It is short-termism and siloed decision making that lead us to choose consumption over conservation, exports over equity.
It is possible that in the absence of a universal pension system as well as retirement age, agents would alternatively choose consumption, labor, and savings, working possibly less over possibly a longer share of their lifetime.
We implement a large-scale OLG model à la Auerbach and Kotlikoff (1987) in which heterogeneous households by level of education endogenously choose consumption and the times spent in the market and in home production.
The representative household chooses consumption and possesses health stock to maximize the discounted sum of utilities defined in Eq. 1 subject to Eq. 8, and given the initial private capital, k 0. The optimal conditions necessary for this optimization problem are given by Eqs.
"We too often have to chose between consumption and productivity, more battery life or functionality, a tablet or a laptop, a touch interface or keyboard and mouse.
Undergraduates often study "utility functions" to learn how people choose alternative consumption baskets in a way that makes them better off.
Of course, a rational consumer would choose the consumption candidate that yields the higher consumer surplus.
Households optimally choose their consumption of market goods, home production, intermediary goods, leisure time, and time spent on home production by maximizing their lifetime utility (V).
Each period, the household receives remittances r and maximizes their utility by choosing a consumption level as well as the study and work time allocation for the child.
More patient subcohorts choose a consumption pattern with an inverse U shape and declining labor supply over lifetime (see Fig. 2 d f).
