What is the impact of a consumption tax on intertemporal choices?

It does not address budget constraints: an impulse to demand from government spending comes out of thin air, rather than being offset by taxation or a cut. 1 ... to an inter-temporal budget constraint, stock of assets, and limits on borrowing. If, at an instant of time, returns to capital are relatively high, the ... If, for example, the current stock of debt is zero, then the intertemporal budget constraint says that the discounted present value of future primary surpluses ... a consumption bundle on the boundary of their budget constraint. According to the intertemporal budget constraint, the present dis- counted value of ... The intertemporal budget constraint proves to be satisfied if either the debt series or the revenue and with-interest spending series are integrated of ... If we partition the inter-temporal budget constraint between the current generation ... to extend the intertemporal budget constraint in equation (6a) into an. Intertemporal budget constraint (IBC): The measure of the rate at which individuals can trade off consumption in one period for consumption in another period. 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 ... Mar 5, 2021 ... This budget constraint equation represents an individual planning her consumption over two periods (before retirement o, after retirement 1). The intertemporal budget constraint proves to be satisfied if either the debt series or the revenue and with-interest spending series are integrated of ...