What are the behavioral economics perspectives on intertemporal choice? How do psychological biases influence saving and consumption decisions?

• Sequential budget constraint for all t ∈ T: ct + st ≤ et + Rtst−1. (1) where s−1 ≡ ¯s−1. • Incomes, returns, and initial capital determine budget set:. Sep 14, 2020 ... That theory is built around the “intertemporal budget constraint,” which essentially states that in the long run, and in present values, the ... to an intertemporal budget constraint. Whatever solution approach one employs — the calculus of variations, optimal control theory or dynamic programming ... Dec 30, 1991 ... ... intertemporal budget constraints, but nevertheless satisfy the nation's budget constraint. In most cases this has occurred because changes ... Nov 9, 2017 ... Finally, the paper claims that fiscal policies that aim at being consistent with an intertemporal budget constraint are likely to destabilize ... More recently, several different researchers have devised and implemented tests of the intertemporal budget constraint in a variety of different contexts. ... intertemporal budget constraint. It is argued that unit root or cointegration tests have low power in rejection unit root from near unit root alternatives ... Sep 6, 2022 ... This expression represents the intertemporal budget constraint. It says that the present discounted value of the endowment plus the initial ... If we partition the inter-temporal budget constraint between the current generation ... to extend the intertemporal budget constraint in equation (6a) into an. The intertemporal budget constraint refers to the trade-off between current and future consumption that individuals face, given their current income and future ...