On the design of an optimal transfer schedule with time inconsistent preferences

This paper incorporates the phenomenon of time inconsistency into the problem of designing an optimal transfer schedule under income shocks and asymmetric information. The optimal solution reflects the dilemma that a principal has to face when playing the roles of self-control enforcer and consumption smoother simultaneously.

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Year of publication:	2008-07-18
Authors:	Campo, Juan Carlos Chavez-Martin del
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 8.2008, 5, p. 1-7
Publisher:	AccessEcon
Subject:	Time Inconsistency

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Extent:	application/pdf
Type of publication:	Article
Classification:	H0 - Public Economics. General ; D9 - Intertemporal Choice and Growth
Source:	RePEc - Research Papers in Economics

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