How does mortgage financing allow households to smooth consumption over time?

The intertemporal budget constraint? Below are 3 quotes from our book. The slope of the budget constraint is determined by the relative price of the two goods, ... Jun 22, 2024 ... This paper extends previous tests of intertemporal budget balance and present value relationships by expanding the set of allowable deficit processes. Keywords: current account deficits, sustainability, intertemporal budget constraint ... sustainability of the intertemporal budget constraint: – when there is no ... More recently, several different researchers have devised and implemented tests of the intertemporal budget constraint in a variety of different contexts. ... intertemporal budget constraint of the consolidated government sector (central bank and governments). This is the consequence of the constraint being a ... 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 budget constraint (IBC): The measure of the rate at which individuals can trade off consumption in one period for consumption in another period. Sep 28, 2020 ... The inter-temporal budget constraints model was used to examine the various fiscal reaction functions, debt dynamics and fiscal policy ... 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. 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 ...