How do expectations about future demand and technological change affect firm investment?

More recently, several different researchers have devised and implemented tests of the intertemporal budget constraint in a variety of different contexts. Aug 26, 2009 ... intertemporal budget constraint and thus determine the dynamics of the debt ratio. ... data are constructed using the government intertemporal ... +. +. +. , and so on – are discount factors. 116. We will refer to this last expression as the intertemporal government budget constraint, which is an infinite- ... Nov 26, 2024 ... The government intertemporal budget constraint is a stock-flow relationship determing the debt dynamics. Consider the general case in which ... It does not address budget constraints: an impulse to demand from government spending comes out of thin air, rather than being offset by taxation or a cut. 1 ... intertemporal budget constraint as those which we present to satisfy both the intertemporal budget constraint and fiscal limits. Bohn (2007) argued that ... 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. Sep 6, 2022 ... This expression represents the intertemporal budget constraint. It says that the present discounted value of the endowment plus the initial ... The intertemporal budget constraint for an infinite-horizon representative agent can be written as. ◜≡H◞t◟-◝ ℙt (C ) = Bt + ℙt. (1). where Bt is 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 ...