Search Results - subject:"Dynamic inconsistency"

Dynamic inconsistency and monetary policy management

Balaban, Georgiana; Vîntu, Denis - Volkswirtschaftliche Fakultät, … - 2010

This paper studies the importance of the dynamic inconsistency of monetary policy. The paper is organized as follows …: in the first part the concept of dynamic inconsistency is explained; the next sections analyse the the rules versus … discretion dilemma and some solutions to counteract the dynamic inconsistency of monetary policy - delegate monetary policy to an …

Persistent link: https://www.econbiz.de/10011113645

Economic Volatility and Institutional Reforms in Macroeconomic Policymaking: The Case of Fiscal Policy

Gersl, Adam; Zápal, Jan - Institut ekonomických studií, Univerzita Karlova v Praze - 2010

We evaluate proposals for independent fiscal authority put forward as a solution to excessive public spending. Our main conclusion is that moving the responsibility to set broad measures of fiscal policy from the hands of government to an independent fiscal council is not necessarily welfare...

Persistent link: https://www.econbiz.de/10008539771

Dynamic model of procrastination

Vrany, Martin - Volkswirtschaftliche Fakultät, … - 2010

Procrastination is the notorious tendency to postpone work for tomorrow. This paper presents a formal model of procrastination based on expectations and prospect theory, which differs signficantly from the prevalent model of O’Donoghue and Rabin. Subject is assumed to work on a task for...

Persistent link: https://www.econbiz.de/10009226805

Write your paper now: Procrastination, conscientiousness and welfare

Broekhuizen, Hendrik van - Department of Economics, Fakulteit Ekonomiese en … - 2010

Procrastination is an almost archetypal phenomenon of human behaviour, the nature and prevalence of which may have severe implications for the foundations of Microeconomic theory and the rational actor model. This paper aims to assess why and how agents procrastinate in theory and what the...

Persistent link: https://www.econbiz.de/10008751658

Economic volatility and institutional reforms in macroeconomic policymaking: The case of fiscal policy

Geršl, Adam; Zápal, Jan - 2010

Persistent link: https://www.econbiz.de/10010322307

Time is Money : Arithmetic Discounting Outperforms Hyperbolic and Exponential Discounting

Doyle, John R.; Chen, Catherine Huirong - 2010

Hyperbolic discounting (H) is currently the dominant behavioral model of intertemporal choice, since it better explains how people behave than the normatively correct exponential discounting model (E). This paper promotes an arithmetic discounting model (A) which challenges H. First, A is more...

Persistent link: https://www.econbiz.de/10014045248

Government Debt Dynamics Under Discretion

Occhino, Filippo - 2010

This paper studies the dynamics of state-contingent government debt in the case that the fiscal authority cannot commit to a policy in the future. Under commitment, optimal policy calls for letting debt follow a stationary process and take values that depend on the initial outstanding...

Persistent link: https://www.econbiz.de/10014195160

Increasing Workload in a Stochastic Environment

Weinschenk, Philipp - 2010

We show that a steeply increasing workload before a deadline is compatible with time-consistent preferences. The key departure from the literature is that we consider a stochastic environment where success of effort is not guaranteed

Persistent link: https://www.econbiz.de/10013136247

A Guided Tour of the World of Rational Expectations Models and Optimal Policies

Jeanfils, Philippe - 2010

This working paper after quickly reviewing the different types of existing macro models presents some basic tools that have proved useful for analysing monetary policy in recent years. Through the use of a simple quantitative forward-looking model of output, inflation and interest rate...

Persistent link: https://www.econbiz.de/10013136334

Transparency and Credibility : Monetary Policy with Unobservable Goals

Faust, Jon - 2010

We define and study transparency, credibility, and reputation in a model where the central bank's characteristics are unobservable to the private sector and are inferred from the policy outcome. A low-credibility bank optimally conducts a more inflationary policy than a high-credibility bank, in...

Persistent link: https://www.econbiz.de/10013137302