Inter-temporal preferences Two periods model In the case with out any uncertainty max(co, CD=u(co)+du(c) St.(v-c0)(1 0 +r)=c1 First order condition u(c n)=6(+r) u(c If Co=c, means 8 1+rInter-temporal preferences • Two periods model : • In the case with out any uncertainty • First order condition: • If means 0 1 0 1 0 1 max ( , ) ( ) ( ) . . ( )(1 ) U c c u c u c s t w c r c = + − + = 0 1 ( ) (1 ) ( ) u c r u c     = +  1 1 r  = + 0 1 c c   =