How do investment decisions in education and training affect future income streams?

Sep 13, 2018 ... price level in line with the intertemporal budget constraint (in real terms). In equilibrium, monetary and fiscal policies jointly ensure ... intertemporal government constraint will be fulfilled because the intertemporal budget constraint requires the discounted debt to converge to zero.7. One ... Intertemporal budget constraint (IBC): The measure of the rate at which individuals can trade off consumption in one period for consumption in another period. 2. Consumer's choices are subject to an intertemporal budget constraint-a measure of the total resources available for present and future consumption. Given the ... 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 as those which we present to satisfy both the intertemporal budget constraint and fiscal limits. Bohn (2007) argued that ... 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 ... If, for example, the current stock of debt is zero, then the intertemporal budget constraint says that the discounted present value of future primary surpluses ... Supervision 1: The Intertemporal Budget Constraint. An infinitely-lived consumer faces a series of period budget constraints: Y1 + (1 + r)B0 = C1 + B1,. Y2 + ... 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 ...