What are the potential long-run consequences of large and persistent government deficits?

(A similar distinction-primary versus total-applies to the budget surplus and the budget balance.) The Intertemporal Budget Constraint. Budget constraints play ... Mar 5, 2021 ... This budget constraint equation represents an individual planning her consumption over two periods (before retirement o, after retirement 1). ... Intertemporal Budget Constraint (GIBC). Now let's suppose that the only kind of expenditures the government engages in are transfers, so that Xt simply ... ... (intertemporal and otherwise) budget constraints. Under weak assumptions, we prove this distorts several aspects of their consumption and production plans ... ... intertemporal budget constraint, has long been a concern. Download to read ... and C.E. Walsh, 1988, Common trends, the government budget constraint ... 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 ... 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 ... 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 ... 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 ... Nov 26, 2024 ... The government intertemporal budget constraint is a stock-flow relationship determing the debt dynamics. Consider the general case in which ...