RDP 8809: The Intertemporal Government Budget Constraint and Tests for Bubbles
Equation (2)
B
0
=
s
0
+
1
/
(
1
+
i
0
)
s
1
+
1
/
[
(
1
+
i
0
)
(
1
+
i
1
)
]
s
2
+
…
+
1
/
[
(
1
+
i
0
)
(
1
+
i
1
)
..
(
1
+
i
t
−
1
)
]
s
t
+
1
/
[
(
1
+
i
0
)
…
(
1
+
i
t
)
]
B
t
+
1
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