Discuss the potential for self-sustaining growth based on intertemporal optimization decisions.

Aug 31, 2020 ... In its standard form, the intertemporal budget constraint requires the present value of a government's future primary cash surpluses to be ... The intertemporal budget constraint proves to be satisfied if either the debt series or the revenue and with-interest spending series are integrated of ... Keywords: current account deficits, sustainability, intertemporal budget constraint ... sustainability of the intertemporal budget constraint: – when there is no ... 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 Nov 2, 2020 ... ... intertemporal budget constraint. The fiscal options open to the State can only be understood if we have a clear understanding of the IBC of ... • Intertemporal decisions. • Fisher's two period model. Page 37. 38. The intertemporal budget constraint – a two-period framework. Period 1: S = Y1 - C1. Period ... Jun 22, 2024 ... This paper extends previous tests of intertemporal budget balance and present value relationships by expanding the set of allowable deficit processes. Apr 18, 2025 ... By applying an intertemporal constraint, the family can allocate funds towards immediate consumption (childcare, living expenses) while ... It does not respect intertemporal budget constraints and therefore cannot be microfounded in a dynamic model. It ignores the downward pressure on consumption ... Sep 6, 2022 ... This expression represents the intertemporal budget constraint. It says that the present discounted value of the endowment plus the initial ...