must converge to zero, we obtain the present value budget constraint: 1, 1 0 t t v t v v d R p        (1) where 1 …. Here, the present value budget constraint simply tells us that there must be consistency between today’s debt stock and … budget constraint is a condition on future required primary surpluses only if one assumes that the government wants to avoid …

fiscal policy in order to satisfy its budget constraint. Keynes stated that the absence of sustainability would be evident … borrowing constraint (PVBC). In order to derive the PVBC of a single country, the flow government budget constraint for a … subsequent periods, and recursively solving that equation leads to the following intertemporal budget constraint …

intended to �nance. In other words, foreign aid relaxes a recipient government�s budget constraint by substituting, rather than … to the following �ow budget constraint _K = (1 )Y C T (3) where is the income tax levied by the government andT … (2), (3), its own budget constraint (4) and the �nancing constraints (5a) and (5b). The government takes the private …

governance by considering the budget constraint. This approach is put in the perspective of the comparative analysis of economic … organizations as discrete structural alternatives. The budget constraint presents a whole range of alternative values that are … distinct by different transaction costs that organizations meet. Following different values of budget constraint, bounded …

. In this paper we will concentrate on the related phenomenon of the soft budget constraint phenomenon. This framework can …

This paper empirically tests whether the soft budget constraint is caused by a dynamic commitment problem, i.e., the …-budget effect is substantial, on average; a local government increases its debt by 20 percent of going from a hard to a soft budget … constraint …