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Economics
- ISSN: 2155-7950
- Journal of Business and Economics
A Consumption-Saving Model in the Infinite Time Horizon
Agnieszka
Szpara, Danuta Seretna-Sałamaj
(University of Applied Sciences in Nysa, Nysa,
Poland)
Abstract: This paper deals with the consumption-saving model in the infinite time horizon with the Epstein-Zin-Weil aggregator function. We formulate the dynamic recursive optimality equation, find the value function and the optimal policy of a consumer. We also provide some examples.
Key words: consumption-saving model, infinite time horizon, value function
JEL code: G
