What are the challenges of discounting future environmental damages?

• 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:. 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 ... present value of domestic production. The intertemporal budget constraint delimits the feasible choices of the economy. To describe the circumstances in which ... 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 ... The consumer's intertemporal budget constraint is c1 + c2. 1 + r. = y1 + y2. 1 + r. Method One:Find MRS and Substitute. Differentiate the Utility function. dU ... Sep 3, 2019 ... ... budget constraint is always binding ⇒ the consumer spends all his life-time income. 6 / 37. Page 7. Budget constraint. • To plot the budget ... how is the deficit financed? • bond sales to the private sector or the central bank (money creation). • government inter-temporal ... ... (intertemporal and otherwise) budget constraints. Under weak assumptions, we prove this distorts several aspects of their consumption and production plans ... Jun 22, 2024 ... This paper extends previous tests of intertemporal budget balance and present value relationships by expanding the set of allowable deficit processes. +. +. +. , and so on – are discount factors. 116. We will refer to this last expression as the intertemporal government budget constraint, which is an infinite- ...