What are the macroeconomic implications of a large fraction of the population being credit-constrained?

Oct 3, 2021 ... Imagine that income in the current period falls (moves to E'). All else being equal, use the line tool to draw the new intertemporal budget constraint. Consumption and Saving Model 1 - Intertemporal Budget Constraint. Video thumbnail for Consumption and Saving Model 1 - Intertemporal Budget Constraint. 0:00. Apr 30, 2020 ... ... budget line gives total utility at each point on the budget line. The ... intertemporal budget constraint? How would it affect one's ... intertemporal budget constraint proceeds as in the proof of Proposition 1. Moreover, we can again show that the hypothesized plan for each unit satisfies ... 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 ... Nov 2, 2020 ... ... intertemporal budget constraint. The fiscal options open to the State can only be understood if we have a clear understanding of the IBC of ... Write out the intertemporal budget constraint. 2. Solve for an equation linking her preferred C0 and C1. 3. Use the result from 2 and the budget constraint ... Aug 13, 2018 ... There we "compact" the constraint into one, so here they are outside the sum and the intertemporal discounting, with the understanding that the ... ... intertemporal budget constraint, has long been a concern. Download to read ... and C.E. Walsh, 1988, Common trends, the government budget constraint ... Nov 24, 2024 ... My hot take is that this isn't a trivial intertemporal budget constraint. It's an optimal stopping problem: cakes have evolving texture and ...