<p>You just have to write down some utility function that changes in each period, in the first there should be an additional term (shock) a constant multiplicative on the disutility of work that reduces it, and then in the second period this constant becomes one. 
A dynamic model solution is a vector of $(l^*_1,l^*_2)$ of the equilibrium hours of work that the consumer chooses according to her preferences, and restrictions. </p>

CC BY-SA 3.0
2015-05-01T12:12:02.740Z
what do you mean by that? putting a constant multiplicative? does that mean that for example we have a utility U(l, c), because of this disutility, we have aU(l,c)? The thing is the question does not have any equation, making it confusing.
Skipe
CC BY-SA 3.0
2015-05-01T16:03:23.110Z
you need a utility for work and consumption in time $U(l_1,l_2,c_1,c_2)$, assume it is separable in time $U_1(l_1,c_1)+U_2(l_2,c_2)$ and then...
user157623
CC BY-SA 3.0
2015-04-30T23:53:42.880Z
2015-04-30T23:53:42.880Z
user157623
<p>Basically, I have the full intertemporal model (the two period model) with the consumer, firm, and government, complete with the investment. And there is this question: Determine an equilibrium path with the case in which workers have a preference shock that reduces the disutility from work $h-l$ in first period. Preferences are back to normal in second period.
Note: $h$ is the number of hours available to work, $l$ is the number of hours spent on leisure, so essentially $h-l$ is the number of hours spent working.</p>

<p>What is this question trying to ask? If I understand the question, I probably will be able to answer. </p>

<macroeconomics><general-equilibrium>
Intertemporal Model Macroeconomics
Skipe
# Intertemporal Model Macroeconomics

(Asked by: username_0 on 2015-04-30)

Basically, I have the full intertemporal model (the two period model) with the consumer, firm, and government, complete with the investment. And there is this question: Determine an equilibrium path with the case in which workers have a preference shock that reduces the disutility from work $h-l$ in first period. Preferences are back to normal in second period.
Note: $h$ is the number of hours available to work, $l$ is the number of hours spent on leisure, so essentially $h-l$ is the number of hours spent working.

What is this question trying to ask? If I understand the question, I probably will be able to answer.

**Tags:** macroeconomics, general-equilibrium

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## 1 answers

### Answer by username_1 on 2015-04-30. Score: 2

You just have to write down some utility function that changes in each period, in the first there should be an additional term (shock) a constant multiplicative on the disutility of work that reduces it, and then in the second period this constant becomes one.
A dynamic model solution is a vector of $(l^\*\_1,l^\*\_2)$ of the equilibrium hours of work that the consumer chooses according to her preferences, and restrictions.

> **Comments:**
> **username_0**: what do you mean by that? putting a constant multiplicative? does that mean that for example we have a utility U(l, c), because of this disutility, we have aU(l,c)? The thing is the question does not have any equation, making it confusing.  
> **username_1**: you need a utility for work and consumption in time $U(l_1,l_2,c_1,c_2)$, assume it is separable in time $U_1(l_1,c_1)+U_2(l_2,c_2)$ and then...  

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