Discuss the implications of different discount rates for long-term decision-making. How do borrowing constraints formally enter the intertemporal budget constraint?

Oct 3, 2021 ... Imagine that income in the current period falls (moves to E'). All else being equal, use the line tool to draw the new intertemporal budget constraint. intertemporal government constraint will be fulfilled because the intertemporal budget constraint requires the discounted debt to converge to zero.7. One ... Sep 29, 2020 ... Abstract. This paper uses the intertemporal government budget constraint model, linear logarithmic functions (for better regression results) ... Bt+1 = (1 + r) Bt + Gt. Tt. (1) where B is the stock of bonds issued by the government (that is B is the stock of real debt - which is an asset in the hand ... intertemporal budget constraint as those which we present to satisfy both the intertemporal budget constraint and fiscal limits. Bohn (2007) argued that ... The intertemporal budget constraint? Below are 3 quotes from our book. The slope of the budget constraint is determined by the relative price of the two goods, ... Consumption and Saving Model 1 - Intertemporal Budget Constraint. Video thumbnail for Consumption and Saving Model 1 - Intertemporal Budget Constraint. 0:00. The intertemporal budget constraint is based on the assumption that income and interest rates are ... A. determined by the consumer. B. determined by the gov't The intertemporal budget constraint proves to be satisfied if either the debt series or the revenue and with-interest spending series are integrated of ... Mar 5, 2021 ... This budget constraint equation represents an individual planning her consumption over two periods (before retirement o, after retirement 1).