In spite of the fact that many durable products are sold through dealers, the literature has largely ignored the issue of how product durability affects the interactions between a manufacturer and her dealers. We seek to fill this gap by considering a durable goods manufacturer that uses...

This paper shows that absent a commitment technology, central banks can nevertheless achieve the (timeless-)optimal commitment equilibrium if they are delegated with an objective function that is different from the societal one. In a prototypical forward-looking New Keynesian model, I develop a...

In order to study time-consistent monetary risk measures in a continuous time, finite horizon setting, there arises a need to define risk-adjusted valuations at all dates in the time continuum. One approach of tackling this issue is to define risk-adjusted valuations at all dates and call this...