Explain the implications of a rising dependency ratio for government spending on pensions and healthcare.

Sep 14, 2020 ... That theory is built around the “intertemporal budget constraint,” which essentially states that in the long run, and in present values, the ... Oct 26, 2017 ... the government's present value budget constraint (PVBC) holds. • the credit market clears: Sp = B. That is, private savings = quantity of debt ... a consumption bundle on the boundary of their budget constraint. According to the intertemporal budget constraint, the present dis- counted value of ... 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 ... to an intertemporal budget constraint. Whatever solution approach one employs — the calculus of variations, optimal control theory or dynamic programming ... 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 ... ... 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 ... how is the deficit financed? • bond sales to the private sector or the central bank (money creation). • government inter-temporal ... The government's intertemporal budget constraint requires that the present value of current and future taxes must be sufficient to cover the present value of ... The level of consumption will be determined by the intertemporal budget constraint (7). • The population growth rate n does not enter into these expressions.