How can models be developed to account for the effects of inequality on intertemporal choices?

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 ... 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 ... The intertemporal budget constraint refers to the trade-off between current and future consumption that individuals face, given their current income and future ... Jul 2, 2020 ... ... intertemporal budget constraint). But you cannot violate a resource constraint: you can only use up the goods and services that have ... Nov 26, 2024 ... The government intertemporal budget constraint is a stock-flow relationship determing the debt dynamics. Consider the general case in which ... It establishes the link which exists between the prevailing level of government indebtedness and the future debt servicing requirements. Aug 20, 2019 ... Consumption, Saving, and the Intertemporal Budget Constraint ... Unless otherwise noted, content on this site is licensed under the Creative ... intertemporal budget constraint as those which we present to satisfy both the intertemporal budget constraint and fiscal limits. Bohn (2007) argued that ... Intertemporal budget constraint (IBC): The measure of the rate at which individuals can trade off consumption in one period for consumption in another period. Try adjusting the two interest rates (for borrowing and saving). Note that each affects one portion of the budget constraint: the rate for borrowing affects the ...