Explain the role of education and financial literacy in saving decisions. What is the relationship between income inequality and intertemporal budget constraints?

The theoretical model of the intertemporal budget constraint suggests that when the rate of return rises, the quantity of saving may rise, fall, or remain the ... 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 ... More recently, several different researchers have devised and implemented tests of the intertemporal budget constraint in a variety of different contexts. Aug 13, 2018 ... There we "compact" the constraint into one, so here they are outside the sum and the intertemporal discounting, with the understanding that the ... Same as with Labor Supply, maximizing utility in the context of intertemporal choices is IDEN-. TICAL to what we've been doing, just with a different budget ... Bt ≥ −. ¯. B or Ct ≤ Wt. Intertemporal budget constraints. • Relate the borrowing constraint to ability to pay. • A complete-markets notion. • Firm: market ... 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. in part due to interviewing methods that check the inter-temporal consistency of responses, ... intertemporal budget constraint of households and asked ... Mar 5, 2021 ... This budget constraint equation represents an individual planning her consumption over two periods (before retirement o, after retirement 1). 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 ...