Intertemporal equilibrium
In the world of Intertemporal equilibrium, there have been countless significant developments and changes over the years. Since its inception, Intertemporal equilibrium has captured the attention and intrigue of people of all ages and interests. Studies and discoveries related to Intertemporal equilibrium have been a source of fascination and debate, and continue to have a significant impact on the world today. As society evolves, so does the role and relevance of Intertemporal equilibrium, making it an extremely relevant and interesting topic to explore and understand in depth. In this article, we will explore the importance and evolution of Intertemporal equilibrium, as well as its meaning and impact today.
 | This article relies largely or entirely on a single source. (December 2025) |
Intertemporal equilibrium[1] is a notion of economic equilibrium conceived over many periods of time.
In modern economic theory, most models explicitly take into account the fact that the economy evolves over time, and that its equilibrium cannot be fruitfully analyzed from a purely static perspective. Therefore the general equilibrium of the economy is conceived as an intertemporal equilibrium, meaning that households and firms are assumed to make intertemporal decisions. That is, households are assumed to choose consumption and labor on the basis of wages, prices, utility, and wealth over their whole lifetimes, instead of considering these quantities at just one point in time. Likewise, firms are assumed to choose hiring, investment, and output on the basis of productivity and demand over the foreseeable future, instead of considering these quantities at just one point in time.
The intertemporal general equilibrium is then analyzed as the Nash equilibrium or competitive equilibrium of the intertemporal strategies of all the households and firms (and any other economic agents under consideration, such as governments).
References
- ^ "Hicks on Temporary Equilibrium". uneasymoney.com. 24 January 2025. Retrieved 4 December 2025.
 | This economics-related article is a stub. You can help Wikipedia by expanding it. |