Closed-Form Solutions of General Intertemporal Consumption-Maximization Models
This paper considers explicit representations for very general (discrete and continuous-time) intertemporal consumption-maximization models which allow the instantaneous preferences of the consumer and the time-preference factors to vary over time and for the the non-existence of utility functions, more than one generation of consumers with a given probability of death, many commodities, and, further, a wide class of preferences which do not necessarily satisfy the so-called “regularity conditions” (such as differentiability, strict convexity, boundedness, or continuity) and include most of the well-known preferences in the literature.
Unable to display preview. Download preview PDF.
- Chipman, J. S. and Moore, J. C. (1976), “The Scope of Consumer’s Surplus Arguments,” in A. M. Tang et al., eds., Evolution, Welfare and Time in Economics, D. C. Heath, Lexington, Mass., 69–123.Google Scholar
- Chipman, J. S. and Moore, J. C. (1980), “Compensating Variation, Consumer’s Surplus, and Welfare,” American Economic Review 70, 933–949.Google Scholar
- Chipman, J. S. and Moore, J. C. (1990), “Acceptable Indicators of Welfare Change, Consumer’s Surplus Analysis, and the Gorman Polar Form,” in J. S. Chipman, D. McFadden, and M. K. Richter, eds., Preferences, Uncertainty and Optimality, Westview Press, Boulder, Colorado, 68–120.Google Scholar
- Gorman, W. M. (1976), “Tricks with Utility Functions,” in M. Artis and R. Nobay, eds., Essays in Economic Analysis, Cambridge University Press, Cambridge, 211–243.Google Scholar
- Kantorovich, L. V. (1965), The Best Uses of Economic Resources. Harvard University Press, Cambridge, Mass.Google Scholar
- Sargent, T. J. (1987), Dynamic Macroeconomic Theory, Harvard University Press, Cambridge, Mass., 1987.Google Scholar
- Tian, G. and Chipman, J. S. (1989), “A Class of Dynamic Demand Systems,” in B. Raj, ed., Advances in Econometrics and Modeling, D. Reidel Publishing Company, Dordrecht, Holland, 93–116.Google Scholar