Search Results - subject:"Time Inconsistency"

Liu, Yichang; Madsen, Joshua; Zhou, Frank - 2021

Recent SEC regulations mandate that hedge fund advisers provide narrative disclosures of their business and operations. We find that 40% of these disclosures contain inconsistencies regarding advisers' regulatory histories, conflicts of interest (COIs), and risks. Inconsistencies are associated...

Persistent link: https://www.econbiz.de/10013239862

Motivational Goal Bracketing with Non-Rational Goals

Koch, Alexander K.; Nafziger, Julia - 2021

We provide a tractable model of motivational goal bracketing by a present-biased individual, extending previous work to show that the main insights from models with rational goals carry over to a setting with non-rational goals. Goals motivate because they serve as reference points that make...

Persistent link: https://www.econbiz.de/10013244262

Optimal and Time-Consistent Polices in Continuous Time Rational Expectations Models

Buiter, Willem H. - 2021

In this note the method of Hamiltonian dynamics is used to characterize the time-consistent solution to the optimal control problem in a deterministic continuous time rational expectations model. A linear quadratic example based on the work of Miller and Salmon is used for simplicity. To derive...

Persistent link: https://www.econbiz.de/10013249273

Nonlocal Fully Nonlinear Parabolic Differential Equations Arising in Time-Inconsistent Problems

Lei, Qian; Pun, Chi Seng - 2021

We prove the well-posedness results, i.e. existence, uniqueness, and stability, of the solutions to a class of nonlocal fully nonlinear parabolic partial differential equations (PDEs), where there is an external time parameter $t$ on top of the temporal and spatial variables $(s,y)$ and thus the...

Persistent link: https://www.econbiz.de/10013324362

Hyperbolic Discounting and the Phillips Curve

Graham, Liam; Snower, Dennis J. - 2021

Using a standard dynamic general equilibrium model, we show that the interaction of staggered nominal contracts with hyperbolic discounting leads to inflation having significant long-run effects on real variables

Persistent link: https://www.econbiz.de/10013325244

The Fed's Discount Window in "Normal" Times

Ennis, Huberto M.; Klee, Elizabeth - 2021

We study new transaction-level data of discount window borrowing in the U.S. between 2010 and 2017, merged with quarterly data on bank financial conditions (balance sheet and revenue). The objective is to improve our understanding of the reasons for why banks use the discount window during...

Persistent link: https://www.econbiz.de/10013231948

Time Consistency of Fiscal and Monetary Policy : A Solution

Persson, Mats; Persson, Torsten; Svensson, Lars E. O. - 2021

This paper demonstrates how time consistency of the Ramsey policy - the optimal fiscal and monetary policy under commitment - can be achieved. Each government should leave its successor with a unique maturity structure for the nominal and indexed debt, such that the marginal benefit of a...

Persistent link: https://www.econbiz.de/10013232768

Optimal and Time Consistent Exchange Rate Management in an Overlapping Generations Economy

Eaton, Jonathan - 2021

This paper analyzes exchange rate management in a simple overlapping generations model. This framework is used to evaluate alternative policies in terms of their implications for the welfare of individuals in the economy.The analysis identifies two objectives of monetary policy,providing...

Persistent link: https://www.econbiz.de/10013234070

The Optimal Degree of Discretion in Monetary Policy

Athey, Susan; Atkeson, Andrew; Kehoe, Patrick J. - 2021

specifies the highest allowable inflation rate. The more severe the time inconsistency problem, the more tightly the cap … monetary authority discretion to react to its private information against society's need to guard against the time … inconsistency problem arising from the temptation to stimulate the economy with unexpected inflation. Although this dynamic …

Persistent link: https://www.econbiz.de/10013216136

Time-inconsistent Preferences and Strategic Self-control in Digital Content Consumption

Zhang, Shuo - 2021

This study examined consumers’ time-inconsistent preferences in digital content consumption and their strategic self-control behaviors. We used a unique dataset obtained from a major digital book platform in China, where consumers can pay either by chapter or a monthly subscription. A third of...

Persistent link: https://www.econbiz.de/10013216788