What is the role of intertemporal optimization in models of business cycles?

• 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 ... The government's intertemporal budget constraint requires that the present value of current and future taxes must be sufficient to cover the present value of ... Sep 14, 2020 ... That theory is built around the “intertemporal budget constraint,” which essentially states that in the long run, and in present values, the ... 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 ... The intertemporal budget constraint? Below are 3 quotes from our book. The slope of the budget constraint is determined by the relative price of the two goods, ... The intertemporal budget constraint implies that D, Q = (1 + r) × (Q,. 와. (1 + r) × (Q, − 1),), so that trade is intertemporally balanced. Figure 7A-3 shows ... ... intertemporal budget constraint considered in a Bewley economy (with a single asset). We also show parameterizations of our model in which we can obtain a ... Sep 13, 2018 ... price level in line with the intertemporal budget constraint (in real terms). In equilibrium, monetary and fiscal policies jointly ensure ... 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 ...