How does a higher discount rate affect the present value of future consumption?

... Intertemporal Budget Constraint (GIBC). Now let's suppose that the only kind of expenditures the government engages in are transfers, so that Xt simply ... Bt+1 = (1 + r) Bt + Gt. Tt. (1) where B is the stock of bonds issued by the government (that is B is the stock of real debt - which is an asset in the hand ... Aug 11, 2003 ... Choosing an investment plan is equivalent to choosing a sequence of capital installations {kt+1}. Intertemporal budget constraint. The sequence ... Write out the intertemporal budget constraint. 2. Solve for an equation linking her preferred C0 and C1. 3. Use the result from 2 and the budget constraint ... Supervision 1: The Intertemporal Budget Constraint. An infinitely-lived consumer faces a series of period budget constraints: Y1 + (1 + r)B0 = C1 + B1,. Y2 + ... Jul 25, 2007 ... ... constraint' and ... The author does so by analysing separately the intertemporal budget constraints of the central bank and the Treasury. Jun 22, 2024 ... This paper extends previous tests of intertemporal budget balance and present value relationships by expanding the set of allowable deficit processes. It establishes the link which exists between the prevailing level of government indebtedness and the future debt servicing requirements. 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 ... 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 ...