The Models of Inter-temporal Consume

• Main Author: Nora Mihail
• Format: Article
• Language: English
• Published: General Association of Economists from Romania 2007-10-01
• Series: Theoretical and Applied Economics
• Subjects: model of inter-temporal consume; budget restriction; transversality condition; synergic effect; systemic approach
• Online Access: http://store.ectap.ro/articole/259.pdf

The articol presents a category of consumption models which shows the manner how the expenses of consume in an economy are related to the available income achieved by this economy and the interest rate from the financial market. Since the income as well as the expenses of consume are realized in time, such dynamic models of consume are also referred to as models of inter-temporal consume, emphasizing therefore the fact that the available income achieved at a certain moment may be used for consume at a future moment, whereas the decision of consume taken at a current moment may consider the income that is to be achieved in the future.