Demo: Life Cycle Consumption with Assets and Labor Supply

For the best results, we recommend using Firefox for this interactive case study.
To solve the Life Cycle Consumption with Assets and Labor Supply Problem:

  • Enter a planning horizon (max=15), a discount factor, and an interest rate.
  • Enter a minimum asset level. A minimum asset level of 0 means that no borrowing is allowed; a minimum asset level less than 0 means that borrowing is allowed.
  • The default utility function and wage function are displayed.
  • Click "Submit" to solve the problem using the NEOS Server.
  • Wait for the results to show up in the solution section at the bottom. The solution section will display the
    objective value and the optimal amount to consume in each period along with the corresponding labor supply and asset value.

Back to Life Cycle Consumption with Assets and Labor Supply case study.

Input Parameters

Planning Horizon (T)
Discount Factor
Interest Rate
Minimum Asset Level
Utility Function
Wage Function w(p,T)
Solver

  

Solution

Objective Value
Consumption   Labor     Assets  
Period 1     
Period 2     
Period 3     
Period 4     
Period 5     
Period 6     
Period 7     
Period 8     
Period 9     
Period 10     
Period 11     
Period 12     
Period 13     
Period 14     
Period 15