Closed-Form Solutions of General Intertemporal Consumption-Maximization Models

  • John S. Chipman
  • Guoqiang Tian


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.


Utility Function Demand Function Monotonic Transformation Indirect Utility Function Borrowing Constraint 
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Copyright information

© Springer-Verlag Berlin · Heidelberg 1993

Authors and Affiliations

  • John S. Chipman
    • 1
  • Guoqiang Tian
    • 2
  1. 1.University of MinnesotaUSA
  2. 2.Texas A&M UniversityUSA

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