Search Results - subject:"Time Inconsistency"

On the Equivalence between Progressive Taxation and Inequality Reduction

Ju, Biung-Ghi - 2008

We establish the precise connections between progressive taxation and inequality reduction, in a setting where the level of tax revenue to be raised is endogenously fixed and tax schemes are balanced. We show that, in contrast with the traditional literature on taxation, the equivalence between...

Persistent link: https://www.econbiz.de/10012726599

Self-Regulation Through Goal Setting

Koch, Alexander K. - 2008

Goals are an important source of motivation. But little is known about why and how people set them. We address these questions in a model based on two stylized facts from psychology and behavioral economics: i) Goals serve as reference points for performance. ii) Present-biased preferences...

Persistent link: https://www.econbiz.de/10012768179

Efficiency and Equilibrium When Preferences are Time-Inconsistent

Mariotti, Thomas - 2008

consumers trade in a sequence of markets, their time-inconsistency may introduce a non-convexity that gives them an incentive to …

Persistent link: https://www.econbiz.de/10012771131

Inflation, Unemployment, and the Time Consistency of the US Monetary Policy

Sachsida, Adolfo; Divino, José Angelo; Cajueiro, … - 2008

This paper verifies the performance of the Barro and Gordon (1983) model to explain the US inflation since the early 1950's. We divide the period from 1951:2 to 2005:2 according to each chairman of the Federal Reserve (FED). In addition, we consider aggregated periods, represented by pre-,...

Persistent link: https://www.econbiz.de/10014213409

International Substitutes for Domestic Institutions : Bilateral Investment Treaties and Governance

Ginsburg, Tom - 2008

This paper concerns the increasing use of international commitment devices by developing countries. These devices include bilateral investment treaties, international arbitration, and multilateral trade commitments. The conventional wisdom is that such devices help to remedy local institutional...

Persistent link: https://www.econbiz.de/10014057096

Durable Goods, Monopoly Maintenance, and Time Inconsistency

Morita, Hodaka; Waldman, Michael - 2008

to time inconsistency. We first demonstrate this result in a setting closely related to Bulow's (1982) classic analysis …

Persistent link: https://www.econbiz.de/10014029357

Time-inconsistency problem: less common than we think

Bastos, Julio Cesar Albuquerque; Mendonça, Helder … - In: Journal of Economic Studies 41 (2014), pp. 708-720

Purpose–The purpose of this paper is to make an empirical analysis concerning time-inconsistency problem (TIP) based on …

Persistent link: https://www.econbiz.de/10011096773

Target Controllability and Time Consistency: Complement to the Tinbergen Rule

Yuan, Huiping; Miller, Stephen M. - Department of Economics, University of Nevada-Las Vegas - 2014

that time inconsistency does not exist in the case of an equal number of instruments and targets. Target uncontrollability … and time inconsistency, however, emerge as problems in the case of fewer instruments than targets. In this case, we obtain … target variability trade-off and solves time inconsistency. As a result, target values are controllable, establishing …

Persistent link: https://www.econbiz.de/10011204521

The behavioral economics of drunk driving

Sloan, Frank A.; Eldred, Lindsey M.; Xu, Yanzhi - In: Journal of Health Economics 35 (2014) C, pp. 64-81

This study investigates whether drinker-drivers attributes are associated with imperfect rationality or irrationality. Using data from eight U.S. cities, we determine whether drinker-drivers differ from other drinkers in cognitive ability, ignorance of driving while intoxicated (DWI) laws, have...

Persistent link: https://www.econbiz.de/10010785236

Consumption–investment strategies with non-exponential discounting and logarithmic utility

Zhao, Qian; Shen, Yang; Wei, Jiaqin - In: European Journal of Operational Research 238 (2014) 3, pp. 824-835

In this paper, we revisit the consumption–investment problem with a general discount function and a logarithmic utility function in a non-Markovian framework. The coefficients in our model, including the interest rate, appreciation rate and volatility of the stock, are assumed to be adapted...

Persistent link: https://www.econbiz.de/10010785316