Teaching the Two Period Consumer Model with Excel Solver
José I. Silva, Àngels Xabadia · 2013
This paper develops a tutorial exercise where students can solve and explore the basic two-period consumer choice model using Excel-Solver . It shows how the class exercise can be set up, how it can be used to teach comparative static analysis with an interactive diagram, and how borrowing constraints can be included. Pedagogical benefits of the approach are highlighted. Keywords : Intertemporal consumer choice model, Excel-Solver , borrowing constraint. JEL classifications : A22, D91, C65.