What is meant by intertemporal?

intertemporal (not comparable) Describing any relationship between past, present and future events or conditions.

What are examples of intertemporal decision making?

Models of intertemporal choice Decisions with consequences in multiple time periods are referred to as intertemporal choices. Decisions about savings, work effort, education, nutrition, exercise, and health care are all intertemporal choices.

What is inter temporal trade?

The gains from trade are traditionally treated in terms of exchange of goods and services in a static, or intratemporal, setting. An intertemporal approach to the CA views CA imbalances as a way of trading across time. For example, a country with a CA deficit is exchanging financial assets for present goods.

What is inter temporal efficiency?

Two notions of inter- temporal efficiency have been developed, namely where one has reached the production frontier for all periods of time taken together (in the sense of Malinvaud) (5) or the much more restrictive case where one has reached the production frontier for some subset of periods of time taken separately.

What is Interorganate and inter temporal comparison?

Further intersectoral comparisons mean comparison across different sectors. Whereas, inter-temporal comparisons means comparison across different time periods.

What led to intertemporal choice?

A preference for focusing on current consumption leads many individuals to make intertemporal choices that accommodate near-term needs and wants.

What is the intertemporal choice theory?

What Is 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 choice under risk and uncertainty?

uncertainty reduces into decision under risk – or probabilities are not known and cannot be. assigned (Knight 1921). Choice under risk. Let us define now a prospect or lottery like the combination of all the possible outcomes with. the probabilities of the events under which these outcomes occur.

What is Interorganate and inter-temporal comparison?

Who invented intertemporal choice?

Irving Fisher developed a model to analyse how rational, forward-looking consumers make consumption choices over a period of time. (3) how these two conjointly determine households’ decision regarding optimal consumption and saving over an extended period of time.