Intertemporal choice

Intertemporal budget constraint with consumption of period 1 and 2 on x-axis and y-axis respectively.

If the consumer is a net saver, an increase in interest rate will have an ambiguous effect on the current consumption.

If the consumer is a net borrower, an increase in interest rate will reduce his current consumption.

Intertemporal choice is the study of how people make choices about what and how much to do at various points in time, when choices at one time influence the possibilities available at other points in time. These choices are influenced by the relative value people assign to two or more payoffs at different points in time. Most choices require decision-makers to trade off costs and benefits at different points in time. These decisions may be about savings, work effort, education, nutrition, exercise, health care and so forth. Since early in the twentieth century, economists have analyzed intertemporal decisions using the discounted utility model, which assumes that people evaluate the pleasures and pains resulting from a decision in much the same way that financial markets evaluate losses and gains, exponentially ‘discounting’ the value of outcomes according to how delayed they are in time. Discounted utility has been used to describe how people actually make intertemporal choices and it has been used as a tool for public policy. Policy decisions about how much to spend on research and development, health and education all depend on the discount rate used to analyze the decision.

单词	Intertemporal choice
释义	Intertemporal choice 英语百科 Intertemporal choice Intertemporal choice is the study of how people make choices about what and how much to do at various points in time, when choices at one time influence the possibilities available at other points in time. These choices are influenced by the relative value people assign to two or more payoffs at different points in time. Most choices require decision-makers to trade off costs and benefits at different points in time. These decisions may be about savings, work effort, education, nutrition, exercise, health care and so forth. Since early in the twentieth century, economists have analyzed intertemporal decisions using the discounted utility model, which assumes that people evaluate the pleasures and pains resulting from a decision in much the same way that financial markets evaluate losses and gains, exponentially ‘discounting’ the value of outcomes according to how delayed they are in time. Discounted utility has been used to describe how people actually make intertemporal choices and it has been used as a tool for public policy. Policy decisions about how much to spend on research and development, health and education all depend on the discount rate used to analyze the decision.
随便看	decay的意思 decayabler的意思 decayablest的意思 Decay accelerating factor的意思 decay acceleration factor的意思 decay accident的意思 decay activating factor的意思 decay amplitude的意思 decay analogue的意思 decay angle的意思 decay area的意思 decay atom的意思 decay at rest的意思 decay branching ratio的意思 decaychain的意思 decay chain的意思 decay chamber的意思 decay characteristic的意思 decay characteristic of phosphor的意思 decay characteristic phosphor的意思 decay chart的意思 decay clock的意思 decay coefficient的意思 Decay Constant的意思 decay constant, disintegration constant的意思