How does a lack of self-control lead to undersaving or excessive borrowing?

Keywords: current account deficits, sustainability, intertemporal budget constraint ... sustainability of the intertemporal budget constraint: – when there is no ... Aug 29, 2022 ... site logo Join Economics · OR · Illustration of upvote icon after it is clicked · Hang on, you can't upvote just yet. · Illustration of upvote ... The intertemporal budget constraint proves to be satisfied if either the debt series or the revenue and with-interest spending series are integrated of ... • Intertemporal decisions. • Fisher's two period model. Page 37. 38. The intertemporal budget constraint – a two-period framework. Period 1: S = Y1 - C1. Period ... Nov 9, 2017 ... Finally, the paper claims that fiscal policies that aim at being consistent with an intertemporal budget constraint are likely to destabilize ... ... (intertemporal and otherwise) budget constraints. Under weak assumptions, we prove this distorts several aspects of their consumption and production plans ... 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. Mar 16, 2019 ... Comments Section ... Given the flow budget constraint given in the beginning, just plug in for t =1,2,3. And use the fact that a3=a0=0. a consumption bundle on the boundary of their budget constraint. According to the intertemporal budget constraint, the present dis- counted value of ... 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 ...