How does a borrowing constraint affect the feasible consumption possibilities in each period?

• Intertemporal decisions. • Fisher's two period model. Page 37. 38. The intertemporal budget constraint – a two-period framework. Period 1: S = Y1 - C1. Period ... a consumption bundle on the boundary of their budget constraint. According to the intertemporal budget constraint, the present dis- counted value of ... 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 ... 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 ... Dec 30, 1991 ... ... intertemporal budget constraints, but nevertheless satisfy the nation's budget constraint. In most cases this has occurred because changes ... May 3, 2011 ... Because of the government's intertemporal budget constraint, Gt will have to be compensated by taxes, either now or in the future, and the ... ... Intertemporal Budget Constraint (GIBC). Now let's suppose that the only kind of expenditures the government engages in are transfers, so that Xt simply ... Nov 24, 2024 ... My hot take is that this isn't a trivial intertemporal budget constraint. It's an optimal stopping problem: cakes have evolving texture and ... Jul 2, 2020 ... ... intertemporal budget constraint). But you cannot violate a resource constraint: you can only use up the goods and services that have ... to an inter-temporal budget constraint, stock of assets, and limits on borrowing. If, at an instant of time, returns to capital are relatively high, the ...