: consumption of an individual in Period i, i = 1, 2. | |
D: consumption of an individual in Period 0, which is constant. | |
: the price of the good in Period i, i = 1, 2. | |
: (expected) inflation rate (plus one). | |
W: nominal wage rate. | |
R: unemployment benefit for an unemployed individual. . | |
: consumption in the childhood period of a next generation consumer. | |
Q: pay-as-you-go pension for an individual of the older generation. | |
: tax payment by an employed individual for the unemployment benefit. | |
: pay-as-you-go pension for consumers of the younger generation when they retire. | |
: tax payment by an employed individual for the pay-as-you-go pension. | |
: profits of firms which are equally distributed to each consumer. | |
L: total employment. | |
: population of labor or employment during the full-employment state. | |
: labor productivity, which is deceasing or constant with respect to the employment, . |