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About EOF Lecture Notes - Consumption and Exchange - Sep 15
1) The model considers consumers living for two periods who can trade current consumption for future consumption, with the price of this trade determining the interest rate. 2) Each consumer aims to maximize their utility subject to their budget constraint. In equilibrium, the marginal utility of consumption must be equal between periods when discounted by the individual's time preference and the price of present consumption. 3) With many consumers, general equilibrium is reached when the total supply of bonds traded for future consumption equals the total demand.
Detailed Information
| Author: | ['碧莹成'] |
|---|---|
| Publication Year: | 2021 |
| Pages: | 23 |
| Language: | English |
| Format: | |
| Price: | FREE |
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