Search Results - subject:"Time Inconsistency"

Unprivatizing the Pension System: The Case of Poland

Hagemejer, Jan; Makarski, Krzysztof; Tyrowicz, Joanna - Wydział Nauk Ekonomicznych, Uniwersytet Warszawski - 2013

findings are robust to time inconsistency. The shortsightedness of the governments imposes welfare costs. …

Persistent link: https://www.econbiz.de/10010699085

Efficiency of the pension reform: the welfare effects of various fiscal closures

Hagemejer, Jan; Makarski, Krzysztof; Tyrowicz, Joanna - Wydział Nauk Ekonomicznych, Uniwersytet Warszawski - 2013

Pension system reforms involve fiscal consequences. In practice, a variety of fiscal closures may be implemented, while not all of them involve the same extent of distortions. This paper develops an overlapping generations model to analyze the case of a shift from pay-as-you-go defined benefit...

Persistent link: https://www.econbiz.de/10010699086

Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans

Brodeur, Abel - Centre for Economic Performance, LSE - 2013

This paper investigates the effects of local smoking bans on different outcomes using county and time variation over the last 20 years in the US. First, I find no evidence that local smoking bans in bars, restaurants and workplaces decrease the prevalence of smoking. The estimates are very small...

Persistent link: https://www.econbiz.de/10010641686

The Logical Consistency of Time Inconsistency: A Theory of Forward-Looking Behavior

Galperti, Simone; Strulovici, Bruno - Center for Mathematical Studies in Economics and … - 2013

This paper argues that, to be forward-looking in a logically consistent sense, a decision maker must take account of his overall well-being, not just his instantaneous utility, in all future periods. However, such a decision-maker is necessarily time inconsistent. The paper explores the...

Persistent link: https://www.econbiz.de/10010703446

Extended Present Bias : A Direct Experimental Test of the Hyperbolic Discounting Hypothesis

Chark, Robin; Chew, Soo Hong; Zhong, Songfa - 2013

In accounting for the phenomenon of present bias, the hyperbolic discounting and quasi-hyperbolic discounting models have distinct predictions beyond today. We provide experimental evidence supporting diminishing rate of discounting beyond present period under careful experimental controls. In...

Persistent link: https://www.econbiz.de/10014186935

Saving Rate Dynamics in the Neoclassical Growth Model - Hyperbolic Discounting and Observational Equivalence

Farzin, Yeganeh Hossein; Wendner, Ronald - 2013

The standard neoclassical growth model with Cobb-Douglas production predicts a monotonically declining saving rate, when reasonably calibrated. Ample empirical evidence, however, shows that the transition path of a country’s saving rate exhibits a rising or non-monotonic pattern. In important...

Persistent link: https://www.econbiz.de/10014157373

The Optimal Degree of Discretion in Monetary Policy

Athey, Susan; Atkeson, Andrew; Kehoe, Patrick J. - 2013

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/10014029267

Discounting Under Disagreement

Heal, Geoffrey - 2013

A group of agents disagree about the appropriate inter temporal preferences to use when exploiting a common productive resource. They thus delegate decision making to a social planner who allocates consumption efficiently across heterogeneous individuals and over time. We define `policy...

Persistent link: https://www.econbiz.de/10013082765

Saving Rate Dynamics in the Neoclassical Growth Model – Hyperbolic Discounting and Observational Equivalence

Farzin, Yeganeh Hossein - 2013

The standard neoclassical growth model with Cobb-Douglas production predicts a monotonically declining saving rate, when reasonably calibrated. Ample empirical evidence, however, shows that the transition path of a country's saving rate exhibits a rising or non-monotonic pattern. In important...

Persistent link: https://www.econbiz.de/10013084502

Working Over Time : Dynamic Inconsistency in Real Effort Tasks

Augenblick, Ned - 2013

rewards. Several recent studies have failed to find the standard patterns of time inconsistency. However, such monetary … confirm very limited time inconsistency in monetary choices. However, subjects show considerably more present bias in effort …

Persistent link: https://www.econbiz.de/10013087790