Discuss the challenges of managing government debt in the face of demographic change and other long-term trends. What is the role of expectations in shaping intertemporal choices?

This is called the intertemporal budget constraint. The present value sum of ... How to derive the intertemporal budget constraint. 3. Conditions for ... It does not respect intertemporal budget constraints and therefore cannot be microfounded in a dynamic model. It ignores the downward pressure on consumption ... Bt ≥ −. ¯. B or Ct ≤ Wt. Intertemporal budget constraints. • Relate the borrowing constraint to ability to pay. • A complete-markets notion. • Firm: market ... More recently, several different researchers have devised and implemented tests of the intertemporal budget constraint in a variety of different contexts. Aug 11, 2003 ... Choosing an investment plan is equivalent to choosing a sequence of capital installations {kt+1}. Intertemporal budget constraint. The sequence ... combined with the intertemporal budget constraint, determine the optimal allocation of (c1,t,h1,t,c2,t+1,h2,t+1). 1.1.2 Tax on Capital Mimics Age-Dependent ... present value of domestic production. The intertemporal budget constraint delimits the feasible choices of the economy. To describe the circumstances in which ... Nov 6, 2016 ... Share your videos with friends, family, and the world. Consumption and Saving Model 1 - Intertemporal Budget Constraint. Video thumbnail for Consumption and Saving Model 1 - Intertemporal Budget Constraint. 0:00. "Are stationarity and cointegration restrictions really necessary for the intertemporal budget constraint?," Journal of Monetary Economics, Elsevier, vol. 54(7) ...