中级微观经济学——理论与应用（第10版）（经济学经典教材·双语教学用书） 作者 尼克尔森等 著 0324319681_67678.pptVIP

Chapter 16 Capital and Time Time Periods and the Flow of Economic Transactions Ways transactions can occur across periods. Durable goods that last more than one period. An individual can borrow or lend. Individual Savings--The Supply of Loans. Savings frees up resources that can be used to produce investment goods. Savings provide funds for firms to finance investment goods. Two-Period Model of Saving Suppose there are only two time periods. C0 is consumption this year. C1 is consumption in the following year. Only consumption yields utility which can be purchased with current income, Y. Income saved earns interest (at a real interest rate of r) before it is used to buy C1. The consumers goal is to maximize utility. A Graphical Analysis The indifference curves in Figure 16-1 show the utility obtainable from various combinations of C0 and C1. When C0 = Y, no income is saved for the second period. When C0 = 0, C1 = (1 + r)Y. The person can consume all income in the second period plus what is earned in interest. FIGURE 16-1: The Savings Decision A Graphical Analysis Between these two endpoints, the budget constraint is the black straight line. Utility is maximized at C*0, C*1 where the MRS equals (1 + r). Utility is maximized where the rate the individual is willing to trade C0 for C1 equals the rate he or she is able to trade these in the market through savings. FIGURE 16-1: The Savings Decision Substitution and Income Effects of a Change in r A change in r changes the “price” of future versus current consumption. The substitution effects of an increase in r are shown in Figure 16-2. The move along U2 to S. The higher opportunity cost of C0 rises and the person substitutes C1 for C0. The person saves more do to the increase in r. FIGURE 16-2: Effect of an Increase in r on Savings Is Ambiguous Substitution and Income Effects of a Change in r The income effect is S to C0**, C1**. If consumption in both periods is a normal good, both should increase. The net effect of