Search Results - subject:"Limited commitment"

Optimal mechanism for the sale of a durable good

Doval, Laura; Skreta, Vasiliki - In: Theoretical Economics 19 (2024) 2, pp. 865-915

A buyer wishes to purchase a durable good from a seller who in each period chooses a mechanism under limited commitment …

Persistent link: https://www.econbiz.de/10015419652

Time-consistent implementation in macroeconomic games

Barthélémy, Jean; Mengus, Eric - In: Theoretical Economics 19 (2024) 3, pp. 1119-1150

The commitment ability of governments is neither infinite nor zero but intermediate. In this paper, we determine the commitment ability that a government needs to implement a unique equilibrium outcome and rule out self-fulfilling expectations. We show that, in a large class of static...

Persistent link: https://www.econbiz.de/10015419710

Wages as signals of worker mobility

Chen, Yu; Doyle, Matthew; González, Francisco M. - In: Theoretical Economics 19 (2024) 1, pp. 499-549

We analyze a model in which workers direct their search on and off the job and employer-worker match productivities are private information. Employers can commit neither to post contracts such that wages are a function of tenure nor to disregard counteroffers. In this context, potential...

Persistent link: https://www.econbiz.de/10014537025

Household bargaining with limited commitment: A practitioner's guide

Hallengreen, Adam; Jørgensen, Thomas H.; Olesen, … - 2024

In this guide, we introduce the limited commitment model of dynamic household bargaining behavior over the life cycle …. The guide is intended to make the limited commitment model more accessible to researchers who are interested in studying … implementation details of the model class, and provide guidance on how to efficiently solve limited commitment models using state …

Persistent link: https://www.econbiz.de/10014551564

The endogenous grid method without analytical inverse marginal utility

Hallengreen, Adam; Jørgensen, Thomas H.; Olesen, … - 2024

The computational time required to solve and estimate dynamic economic models is one of the main constraints in empirical research. The Endogenous Grid Method (EGM) proposed by Carroll (2006) is known to offer impressive speed gains over more traditional stochastic dynamic programming methods,...

Persistent link: https://www.econbiz.de/10014551620