What are the conditions under which government debt can be sustainable?

Bt ≥ −. ¯. B or Ct ≤ Wt. Intertemporal budget constraints. • Relate the borrowing constraint to ability to pay. • A complete-markets notion. • Firm: market ... The intertemporal budget constraint of the central bank in equation (5) becomes: PV (d) ≤ at pt(r + π + δ). − vt + ctL π + g r − g. (6) under the following ... Aug 26, 2009 ... intertemporal budget constraint and thus determine the dynamics of the debt ratio. ... data are constructed using the government intertemporal ... +. +. +. , and so on – are discount factors. 116. We will refer to this last expression as the intertemporal government budget constraint, which is an infinite- ... Aug 20, 2019 ... Consumption, Saving, and the Intertemporal Budget Constraint ... Unless otherwise noted, content on this site is licensed under the Creative ... ... intertemporal budget constraint, has long been a concern. Download to read ... and C.E. Walsh, 1988, Common trends, the government budget constraint ... Oct 26, 2017 ... the government's present value budget constraint (PVBC) holds. • the credit market clears: Sp = B. That is, private savings = quantity of debt ... 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. The consumer's utility maximization is constrained by several budget equations. Primary is the individual's intertemporal budget constraint,. 3 This ... The theoretical model of the intertemporal budget constraint suggests that when the rate of return rises, the quantity of saving may rise, fall, or remain the ...