The The Model of the Aggregated Consumer with Detailed Description of Consumer Financial Balance Using the Original Method of Relaxation of Complementary Slackness Conditions

Abstract

This paper is complementary to a series of researches on aggregated consumer behavior and complementary slackness conditions application in linear nonautonomous optimal control type problems with mixed conditions. The model of an aggregated consumer is proposed. Consumer maximizes utility function in consumption and labor and chooses the values of its planned variables: loans and deposits in national and foreign currency, amount of real estate, and currency. The key feature of the proposed approach is a detailed description of all financial instruments that are available to the consumer.