We study finite horizon consumption and portfolio decisions of time-inconsistent individuals by incorporating the stochastic hyperbolic preferences of Harris and Laibson (2013) into the classical model of Merton (1969, 1971) with constant relative risk aversion (CRRA). We obtain closed-form...

<Para ID="Par1">We develop a theory for a general class of discrete-time stochastic control problems that, in various ways, are time-inconsistent in the sense that they do not admit a Bellman optimality principle. We attack these problems by viewing them within a game theoretic framework, and we look for...</para>

This paper analyzes the incentive effects of pollution taxes versus pollution permits for a budget oriented Government. Pollution permits are analyzed as durable goods, and a pollution tax is seen as an equivalent to leasing pollution permits. First, a general model is developed and then four...