is well known from the literature that hyperbolic discounting bears the problem of time-inconsistency. As Strotz (1956 … that it is not optimal anymore. Although the time-inconsistency property of hyperbolic discounting has been used to model … 2001, Gruber and Koszegi 2001), there is a debate on how serious is the problem of time-inconsistency in long-term and …

inconsistency of their preferences. As a consequence, awareness of the time-inconsistency problem poses at best a short run remedy …. -- Environmental policy ; environmental protection ; hyperbolic discounting ; Markov perfect equilibria ; time-inconsistency … where all agents prefer further investments, yet no agent invests. This holds no matter whether agents are aware of the time …

equations (2) and (3), respectively. The time inconsistency of the optimal commitment policy is re�ected in the di … central bank would continue to implement the inferior policy, highlighting the time inconsistency of the timeless perspective …

about the relevance of time-inconsistency as a major distortion in real-world decisions at central banks. 3 “bank learns …

equilibria coincide, both being strongly time consistent. This allows us to bypass the issue of the time inconsistency that …