What is the meaning of intertemporal choice?
Intertemporal choice is an economic term describing how current decisions affect what options become available in the future. Theoretically, by not consuming today, consumption levels could increase significantly in the future, and vice versa.
What is the intertemporal model?
Investment is essentially passive: the “one good” assumption leads to a perfectly elastic investment supply; the absence of installation costs for investment leads to a perfectly elastic investment demand. …
What is the meaning of intertemporal equilibrium?
An intertemporal equilibrium is an economic concept that holds that the equilibrium of the economy cannot be adequately analyzed from a single point in time but instead should be analyzed over the long term.
What is the doctrine of intertemporal law?
Intertemporal law (tempus regit actum) is a concept in the field of legal theory. Intertemporal law can be more broadly defined as the branch of law which governs the usage of treaties, codifications and legal acts to the cases that occurred before their creation or entry into force.
What is intertemporal equilibrium?
What is the MPC in economics?
In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.
What is inter temporal allocation?
Intertemporal portfolio choice is the allocation of funds to various assets repeatedly over time, with the amount of investable funds at any future time depending on the portfolio returns at any prior time. Thus the future decisions may depend on the results of current decisions.
What does intertemporal mean?
intertemporal (not comparable) Describing any relationship between past, present and future events or conditions.
What are intertemporal choices in economics?
In addition to risk preference, another central concept in economics is intertemporal choices which are decisions that involve costs and benefits that are distributed over time. In humans, a reduction in cortisol, released by the hypothalamus in response to stress, is correlated with a higher degree of impulsivity in intertemporal choice tasks.
What is the ‘intertemporal scope’ of equal treatment?
The true issue is the ‘intertemporal scope’ of the principle: when, as a result of a new rule introduced as from a certain date, individuals are treated less favourably after that date than before it, does that breach the principle of equal treatment?