Re: ISI PEA 2015 discussion

Posted by Yo on May 12, 2015; 10:39am
URL: http://discussion-forum.276.s1.nabble.com/ISI-PEA-2015-discussion-tp7596744p7596896.html

Did anyone do the consumption smoothing question in peb?
For a)delta was 0
But for b how did u guys show the bias towards future consumption and present consumption.. Did u guys just draw the optimal point above y2,to show that c2>y2 and hence  bias towards future consumption ? And likewise for the present consumption part ??