Dmitri Borzykh, Aleksey Sholomitsky

A Life-Cycle Model with Myopic Decision Making

2011. Vol. 15. No. 3. P. 383–398 [issue contents]
A dynamic model of individual consumption, saving and labor supply with obligatory pension insurance is considered. A distinctive feature of the model is a myopic approach to decision making, as the decision horizon is bounded to two periods: current period t and the next period t +1. An analytic solution of a two-period optimization problem is obtained. The model generates labor supply and income age-related curves which agree with empirical observations.
Citation: Borzykh Dmitri Aleksandrovich, Sholomitsky Aleksey Gennad'evich (2011) Model' zhiznennogo tsikla s «blizorukim» prinyatiem resheniy [A Life-Cycle Model with Myopic Decision Making] Ekonomicheskiy zhurnal VShE, 3, pp. 383-398 (in Russian)
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