Re: [Pen-l] smart grid question

[Jim Devine <jdevine03@xxxxxxxxx>]

not only will I be older, but I'll be wiser. So I'll deserve the warmth.

Seriously, I don't see why this problem is a biggie. I don't see any
reason to discount future warmth. Dynamic programming goes out the
window as the discount rate goes to zero. Thus, the main reason to
adjust the thermostat is the price of power. Health and income are
constants for most.

On Mon, Jun 8, 2009 at 2:00 PM, Max Sawicky<maxbsawicky@xxxxxxxxx> wrote:
> You can decide to save money and be cold now and
> warmer when you're older, or vice versa.
>
> And you call yourself an economist.
>
>
> On Mon, Jun 8, 2009 at 1:56 PM, Jim Devine<jdevine03@xxxxxxxxx> wrote:
>> Miracle Max wrote:
>>> The next-generation thermostats will solver your inter-temporal
>>> optimization problem, switching your heat and A/C on and off in
>>> response to price changes, in coordination with your tolerance for
>>> uncomfortably high or low temperatures, constrained by health, your
>>> lifetime income, and liquidity constraints.  Econ grad students are
>>> solving this problem as we speak.
>>
>> why is this inter-temporal? if you borrow to pay your utility bills,
>> you lack the scope to plan ahead. It's a cash-flow decision.
>>
>> --
>> Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
>> way and let people talk.) -- Karl, paraphrasing Dante.
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-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
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