Excel Sheet for "Consumption With Markets for Saving/Borrowing"
In this model we introduce the ability to save or borrow, and thereby reallocate consumption across time periods. The results can be compared with Part I to show the benefit of the financial market. The model can also be used to show how different consumers will react to changes in economic variables such as the interest rate. The model is described in Guo and Gilbert (2014) "Demystifying Financial Markets for Saving and Insurance With Numerical Models" Journal of Economic Education.
|Date of creation:||30 Sep 2013|
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Web page: http://huntsman.usu.edu/economicsandfinance/
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