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Closed-Form Solutions of General Intertemporal Consumption-Maximization Models

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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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We thank M. R. Baye and G. Lozada for useful comments and suggestions.

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© 1993 Springer-Verlag Berlin · Heidelberg

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Chipman, J.S., Tian, G. (1993). Closed-Form Solutions of General Intertemporal Consumption-Maximization Models. In: Diewert, W.E., Spremann, K., Stehling, F. (eds) Mathematical Modelling in Economics. Springer, Berlin, Heidelberg.

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-78510-8

  • Online ISBN: 978-3-642-78508-5

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