Irving Fisher and Intertemporal choice

Beschreibung

Irving Fisher
ASHVEEN NUNKOO
Karteikarten von ASHVEEN NUNKOO, aktualisiert more than 1 year ago
ASHVEEN NUNKOO
Erstellt von ASHVEEN NUNKOO vor mehr als 8 Jahre
73
0

Zusammenfassung der Ressource

Frage Antworten
What are the assumptions in the Irving Fisher Intertemporal choice? 1. Consumers are forward looking 2. Consumer chooses consumption in the present and future to maximise lifetime consumption
What does the consumer intertemporal budget constraint represents in the Irving Fisher? Represents the measure of the total resources available for both present and future consumption
List all the notations used in the Irving Fisher and Intertemporal choice. 1. Period 1 = present 2. Period 2 = future 3. C1 = consumption in period 1 4. C2 = consumption in period 2 5. Y1 = Income i period 1 6. Y2 = Income in period 2 7. r = real interest rate 8. S = Y1-C1 ( saving in period 1)
In which period is saving found in Irving? period 1 There's no saving in period 2
Which period should we take into consideration when deriving the budget constraint? Period 2
Which equation should you start with when begining the derivation? C2 = Y2 + (1+r)S
What do you understand by your equation cited above? My consumption in period 2 should equals my income in period 2 plus my saving in period 1.
When derving you will finally come to this C2/(1+r) + C1 = Y2/(1+r) + Y1 What does the left and right side of this equation represents respectively? Left side= Present value of lifetime consumption Right side= Present value of lifetime income
What should you explain in your diagram The y-intercept and the x-intercept and then borrowing and saving
What is the slope of the budget line in Irving? -(1+r)
Difference betwenn Keynes and Fisher? Keynes- Current consumption depends only on current income Fisher- Current consumption depends only on the present value of lifetime income
What can you say about the timing of income in Fisher? It is irrelevant because consumer can borrow or lend across periods.
Zusammenfassung anzeigen Zusammenfassung ausblenden

ähnlicher Inhalt

Organic Chemistry 1 Primer: Lesson 1.19
Proton Guru
AS Psychology: Cognitive Interview Revision
Asterisked
Externalities
Yassmin Dehesh
Level 3: Genetic Drift
ZoeZhou
AS Psychology: Cognitive Interview Revision
Beth Strain
Externalities
Andrea Santiago
Food System
Weaving TUACH
The Commonwealth
Laura D
Methoden der Stratigraphie
Weltraumkatze Fanroth
PAED
M T
STEP 2 VO 1. Teil
Leo Minor