Search Results - subject:"Time Inconsistency"

Addiction and Self-Control: An Intrapersonal Game

Rafael, López - In: REVISTA DESARROLLO Y SOCIEDAD (2006)

In their model of addiction, O´Donoghue and Rabin obtain a counterintuitive result: a person that is fully aware of his self-control problems (sophisticate) is more prone to become addicted than one who is fully naware (na¨ıf). In this paper we show that this result arises from their...

Persistent link: https://www.econbiz.de/10005064246

Pre-Commitment and Flexibility in a Time Decision Experiment.

Casari, Marco - Krannert School of Management, Purdue University - 2006

This study presents experimental data on pre-commitment and flexibility where monetary rewards are delivered with an actual delay. Preference for pre-commitment is defined as willingness to pay a cost to restrict the size of the choice set available in the future. Preference for flexibility is...

Persistent link: https://www.econbiz.de/10005739809

Delegation versus Communication in the Organization of Government

Ludema, Rodney D.; Olofsgård, Anders - Georgetown University, Department of Economics - 2006

paper examines both questions within a model of policymaking under time inconsistency, a setting in which the government has … delegating authority, as long as the time inconsistency problem is not too severe. The second main finding is that the government …

Persistent link: https://www.econbiz.de/10005169606

Insider trading among central bankers: A treatise on temptation and policy choice

Schinke, Michael; Graf Lambsdorff, Johann - Fakultät für Wirtschaftswissenschaften, Universität … - 2006

Corruption among central banks induces distorted policies by, first, increasing the inflation bias and, second, potentially inducing a pro-cyclical adjustment of employment. In response to a negative supply shock a corrupt central banker is tempted to decrease money supply. In this case, he...

Persistent link: https://www.econbiz.de/10009646627

Does Talk Matter after All? : Inflation Targeting and Central Bank Behavior

Posen, Adam Simon; Kuttner, Kenneth N. - 2006

interpretations of the adoption of IT as shifts between strategies in a conventional model of monetary time-inconsistency. Their …

Persistent link: https://www.econbiz.de/10014182417

Markets Versus Governments : Political Economy of Mechanisms

Acemoglu, Daron; Golosov, Michail Ju.; Tsyvinski, Aleh - 2006

We study the optimal Mirrlees taxation problem in a dynamic economy with idiosyncratic (productivity or preference) shocks. In contrast to the standard approach, which implicitly assumes that the mechanism is operated by a benevolent planner with full commitment power, we assume that any...

Persistent link: https://www.econbiz.de/10014058666

Insider trading among central bankers : a treatise on temptation and policy choice

Schinke, Michael; Lambsdorff, Johann - 2006

. -- Time-inconsistency ; inflation bias ; seignorage ; stochastic supply side shocks ; conservatives ; populists …

Persistent link: https://www.econbiz.de/10009424461

Does the time inconsistency problem make flexible exchange rates look worse than you think?

Armenter, Roc; Bodenstein, Martin; Vigfusson, Robert J. - 2006

Persistent link: https://www.econbiz.de/10003374160

Inflation band targeting and optimal inflation contracts

Mishkin, Frederic S.; Westelius, Niklas J. - 2006

Persistent link: https://www.econbiz.de/10003354897

Optimal time consistent monetary policy

Damjanovic, Tatiana (contributor); … - 2006

. Introduction Kydland and Prescott (1977) brought into sharp focus the issue of time inconsistency of optimal policy in …�erent ways of addressing the time inconsistency issue. We �rst look at TP-policy strategies as this usefully sets out the key … initial conditions). This is a form of time-inconsistency but it is useful to give it a separate label to distinguish it from …

Persistent link: https://www.econbiz.de/10003359196