Barro-Gordon revisited: Reputational equilibria with inferential expectations

We incorporate inferential expectations into the Barro-Gordon model (Barro and Gordon, 1983a) of time inconsistency and consider reputational equilibria. The range of sustainable equilibria shrinks as the private sector becomes more belief-conservative.

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Year of publication:	2011
Authors:	Henckel, Timo ; Menzies, Gordon D. ; Prokhovnik, Nick ; Zizzo, Daniel J.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 112.2011, 2, p. 144-147
Publisher:	Elsevier
Keywords:	Credibility Time inconsistency Reputation Inferential expectations

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009146146