Explain how aggregate saving and investment decisions drive long-run economic growth.

Apr 18, 2025 ... By applying an intertemporal constraint, the family can allocate funds towards immediate consumption (childcare, living expenses) while ... US monthly data, for the period 1951-1984, are used to test a key element of the. Ricardian equivalence doctrine, namely the government's intertemporal budget. ... intertemporal budget constraint. It is argued that unit root or cointegration tests have low power in rejection unit root from near unit root alternatives ... intertemporal budget constraint as those which we present to satisfy both the intertemporal budget constraint and fiscal limits. Bohn (2007) argued that ... Jul 25, 2007 ... ... constraint' and ... The author does so by analysing separately the intertemporal budget constraints of the central bank and the Treasury. The intertemporal budget constraint is a concept in behavioral economics that describes the trade-offs individuals face when making consumption and savings ... Indeed, given the accounting equation (9.6), the consumption plan of the household will satisfy the intertemporal budget constraint (9.20) if and only if it ... Sep 13, 2018 ... price level in line with the intertemporal budget constraint (in real terms). In equilibrium, monetary and fiscal policies jointly ensure ... ... (intertemporal and otherwise) budget constraints. Under weak assumptions, we prove this distorts several aspects of their consumption and production plans ... It establishes the link which exists between the prevailing level of government indebtedness and the future debt servicing requirements.