Dear all,

I often read in papers the program of households as a per capita utility function and budget constraint (steaming from the representative agent hypothesis).

What if I want to code a utility function and a budget constraint which takes into account demographic growth? Should I, in addition to assuming for total labor revenues w(t).h(t).L(t) in the budget constraint, assume that utility function?

Or should I keep my model in per capita (or per efficiency units of labor) ?

Keep in mind that the demographic growth rate and the labor productivity growth rate are constant through time in my model.

Thank you,