Search Results - subject:"Inconsistency"

A Game Theoretic Analysis of Tariffs, Dynamic Inconsistency, Resource Conservation, and Trade

Batabyal, Amitrajeet A. - 2013

Recently, Batabyal and Beladi (2004) have used a Stackelberg differential game model to study trade in a renewable resource between a single buyer and a single seller. The buyer uses a unit tariff to indirectly encourage conservation of the renewable resource and the entire harvest from the...

Persistent link: https://www.econbiz.de/10014065643

Optimal Time-Consistent Macroprudential Policy

Bianchi, Javier - 2013

Collateral constraints widely used in models of financial crises feature a pecuniary externality: Agents do not internalize how borrowing decisions taken in "good times" affect collateral prices during a crisis. We show that agents in a competitive equilibrium borrow more than a financial...

Persistent link: https://www.econbiz.de/10012458958

Bailouts, Time Inconsistency, and Optimal Regulation

Chari, V.V. - 2013

the debt-to-value ratio of firms mitigates the time-inconsistency problem by eliminating the incentives of governments to …

Persistent link: https://www.econbiz.de/10012459471

Liquidity and Inefficient Investment

Hart, Oliver D. - 2013

We study the role of fiscal policy in a complete markets model where the only friction is the nonpledgeability of human capital. We show that the competitive equilibrium is constrained inefficient, leading to too little risky investment. We also show that fiscal policy following a large negative...

Persistent link: https://www.econbiz.de/10012459478

Discounting under Disagreement

Heal, Geoffrey - 2013

A group of agents disagree about the appropriate inter temporal preferences to use when exploiting a common productive resource. They thus delegate decision making to a social planner who allocates consumption efficiently across heterogeneous individuals and over time. We define `policy...

Persistent link: https://www.econbiz.de/10012459663

Working Over Time : Dynamic Inconsistency in Real Effort Tasks

Augenblick, Ned - 2013

rewards. Several recent studies have failed to find the standard patterns of time inconsistency. However, such monetary … confirm very limited time inconsistency in monetary choices. However, subjects show considerably more present bias in effort …. Therefore our findings validate a key implication of models of dynamic inconsistency, with corresponding policy implications …

Persistent link: https://www.econbiz.de/10012459928

Macroprudential Regulation Versus Mopping Up After the Crash

Jeanne, Olivier - 2013

We study the interplay of optimal ex-ante (macroprudential) and ex-post (monetary or fiscal stimulus) measures to respond to systemic financial crises in a tractable model of fire sales. We find that it is generally optimal to use both, rejecting the Greenspan doctrine to only intervene ex post....

Persistent link: https://www.econbiz.de/10012459987

Time-consistency problem and the behavior of US inflation from 1970 to 2008

Nonejad, Nima - 2013

Persistent link: https://www.econbiz.de/10009782705

Sudden stops, time inconsistency, and the duration of sovereign debt

Hatchondo, Juan Carlos; Martinez, Leonardo - 2013

sequential basis, sudden stop risk increases the average duration by 1 year. Second, we illustrate the time inconsistency problem …

Persistent link: https://www.econbiz.de/10012667555

Sudden Stops, Time Inconsistency, and the Duration of Sovereign Debt

Hatchondo, Juan Carlos - 2013

sequential basis, sudden stop risk increases the average duration by 1 year. Second, we illustrate the time inconsistency problem …

Persistent link: https://www.econbiz.de/10013078048