This week's book giveaway is in the OCAJP 8 forum. We're giving away four copies of OCA Java SE 8 Programmer I Study Guide and have Edward Finegan & Robert Liguori on-line! See this thread for details.
Variables declared inside a constructor work exactly the same as local variables declared in a method. The scope is ofcourse the enclosing block (which might be the constructor itself). Variables are allocated on the stack, and objects are always allocated on the heap.