Inter-temporal preferences Utility function of inter-temporal U(c(…c)=∑。h(c) Every period consumption c, depend on how much he consumed and invested in period t-1Inter-temporal preferences • Utility function of inter-temporal • Every period consumption ct depend on how much he consumed and invested in period t-1. 1 1 1 ( ) ( ) T t T t t U c c u c  − = = 