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Suppose now that the government decides not to subsidize retired athletes because voters do not think that it is fair. One athlete, Javier, consults you
Suppose now that the government decides not to subsidize retired athletes because voters do not think that it is fair. One athlete, Javier, consults you (the economist) and, according to the conditions laid out by you in part 7 above, has therefore made the rational decision not to go pro. However, he later realizes that after retirement, he can earn an additional income K by selling cryptocurrencies. In other words, his income in period t=2 is greater than zero. 10. Write a new intertemporal budget constraint for Javier that accounts for his new source of income, K. 11. All things considered, Javier's final decision now is to go pro. Illustrate the new equilibrium using the same diagram above. Referencing your diagram, explain briefly and intuitively why his decision would be rational
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