with reference from the Life cycle hypothesis (LCH) theory of consumer behaviour, explain why investment is necessary within the household sector. i need the theory part of it
A valid point, but this would make our model more complicated with no real benefit. I'd maybe think of this as children receiving 'income' from their parents. Children may not earn income, but they also don't have savings. The fact that parents provide for you when you are young doesn't really make a difference to the point this model is trying to make.
Thank you so much! Helped me so much for my exam!
got some great intuition from this, thank you!
So glad!
Thanks. Amazing videos
with reference from the Life cycle hypothesis (LCH) theory of consumer behaviour, explain why investment is necessary within the household sector.
i need the theory part of it
loved this video! thanks
Its weird that income is assumed from period 1 to 64, would it not be more realistic to model income from at least 16 years of age?
A valid point, but this would make our model more complicated with no real benefit. I'd maybe think of this as children receiving 'income' from their parents.
Children may not earn income, but they also don't have savings. The fact that parents provide for you when you are young doesn't really make a difference to the point this model is trying to make.
thank you!