Discuss the implications of behavioral biases related to risk perception for intertemporal decisions. How do government debt and fiscal policy affect the aggregate intertemporal budget constraint?

... Intertemporal Budget Constraint (GIBC). Now let's suppose that the only kind of expenditures the government engages in are transfers, so that Xt simply ... to an intertemporal budget constraint. Whatever solution approach one employs — the calculus of variations, optimal control theory or dynamic programming ... ... (intertemporal and otherwise) budget constraints. Under weak assumptions, we prove this distorts several aspects of their consumption and production plans ... (A similar distinction-primary versus total-applies to the budget surplus and the budget balance.) The Intertemporal Budget Constraint. Budget constraints play ... The intertemporal budget constraint is a concept in behavioral economics that describes the trade-offs individuals face when making consumption and savings ... Sep 3, 2019 ... ... budget constraint is always binding ⇒ the consumer spends all his life-time income. 6 / 37. Page 7. Budget constraint. • To plot the budget ... Apr 18, 2025 ... By applying an intertemporal constraint, the family can allocate funds towards immediate consumption (childcare, living expenses) while ... If the consumer faces an intertemporal budget constraint. C1 + β C2 = constant, where β = 1/(1 + interest rate) is the period-1 equivalent of a dollar in ... intertemporal budget constraint proceeds as in the proof of Proposition 1. Moreover, we can again show that the hypothesized plan for each unit satisfies ... ... intertemporal budget constraint considered in a Bewley economy (with a single asset). We also show parameterizations of our model in which we can obtain a ...