How do expectations formation processes (e.g., rational expectations, adaptive expectations) affect model predictions?

If we partition the inter-temporal budget constraint between the current generation ... to extend the intertemporal budget constraint in equation (6a) into an. ... Intertemporal Budget Constraint (GIBC). Now let's suppose that the only kind of expenditures the government engages in are transfers, so that Xt simply ... Dec 7, 2015 ... Another central concept is the intertemporal budget constraint, according to which the present value of current and future government ... (A similar distinction-primary versus total-applies to the budget surplus and the budget balance.) The Intertemporal Budget Constraint. Budget constraints play ... • Intertemporal budget constraint. – implications of rolling over the period-by-period constraint. • Deficits and debt sustainability. – how much government ... • Intertemporal decisions. • Fisher's two period model. Page 37. 38. The intertemporal budget constraint – a two-period framework. Period 1: S = Y1 - C1. Period ... intertemporal budget constraint as those which we present to satisfy both the intertemporal budget constraint and fiscal limits. Bohn (2007) argued that ... 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 ... +. +. +. , and so on – are discount factors. 116. We will refer to this last expression as the intertemporal government budget constraint, which is an infinite- ... The intertemporal budget constraint is a concept in behavioral economics that describes the trade-offs individuals face when making consumption and savings ...