Search Results - subject:"time inconsistency."

Sayman, Serdar; Öncüler, Ayse - In: Management Science 55 (2009) 3, pp. 470-482

Preference between two future outcomes may change over time--a phenomenon labeled as time inconsistency. The term "time … current paper presents four empirical studies showing that time inconsistency in the other direction is also possible: A … when the smaller option becomes immediately available. We find that such "reverse time inconsistency" is more likely to be …

Persistent link: https://www.econbiz.de/10009209175

Time inconsistency and retirement choice

Findley, T. Scott; Caliendo, Frank N. - In: Economics Letters 129 (2015) C, pp. 4-8

Hyperbolic discounting with naiveté is widely believed to provide a better explanation than exponential discounting of why people borrow so much and why they wait so long to save for retirement. We reach a different set of conclusions. We show that if financial planning is enriched to include...

Persistent link: https://www.econbiz.de/10011263429

Equilibrium resource management with altruistic overlapping generations

Ekeland, Ivar; Karp, Larry; Sumaila, Rashid - In: Journal of Environmental Economics and Management 70 (2015) C, pp. 1-16

-constant discount rates, leading to time inconsistency. The unique Markov Perfect equilibrium to this model has a striking feature …

Persistent link: https://www.econbiz.de/10011208577

A quantitative analysis of optimal sustainable monetary policies

Sunakawa, Takeki - In: Journal of Economic Dynamics and Control 52 (2015) C, pp. 119-135

This study examines the quantitative properties of optimal sustainable monetary policies using a monetary model with a stabilization bias. As in Kurozumi (2008), the optimal sustainable policy is a strategy considered in the absence of commitment technologies; however it is implemented following...

Persistent link: https://www.econbiz.de/10011209204

Collective Self Control

Lizzeri, Alessandro; Yariv, Leeat - C.E.P.R. Discussion Papers - 2015

economy where the only “distortion” is agents’ time inconsistency. We study the desirability of various forms of collective … centralized. First-period welfare is highest under either full centralization or laissez faire, depending on the populations’ time-inconsistency …

Persistent link: https://www.econbiz.de/10011186618

Hyperbolic discounting and endogenous growth

Strulik, Holger - In: Economics Letters 126 (2015) C, pp. 131-134

This paper provides the closed form solution for the standard model of endogenous growth when consumers have present-biased preferences and make time-inconsistent savings plans, which they revise continuously. It is shown that long-run growth is not necessarily lower under present-biased...

Persistent link: https://www.econbiz.de/10011189493

Sovereign default risk and commitment for fiscal adjustment

Gonçalves, Carlos Eduardo; Guimaraes, Bernardo - In: Journal of International Economics 95 (2015) 1, pp. 68-82

This paper studies fiscal policy in a model of sovereign debt and default. A time inconsistency problem arises: since …

Persistent link: https://www.econbiz.de/10011190988

How Disagreement About Social Costs Leads to Inefficient Energy-Productivity Investment

Voß, Achim - In: Environmental & Resource Economics 60 (2015) 4, pp. 521-548

considerations. We analyze this governmental time-inconsistency situation as a sequential game. In particular, we show how the …

Persistent link: https://www.econbiz.de/10011241756

Credit Card Competition and Naive Hyperbolic Consumers

Incekara-Hafalir, Elif - In: Journal of Financial Services Research 47 (2015) 2, pp. 153-175

find that time inconsistency steers the competition from long-term borrowing contingent prices to short-term noncontingent …

Persistent link: https://www.econbiz.de/10011241838

Production and Anticipatory Hedging Under Time-Inconsistent Preferences

Lien, Donald D. - 2015

This paper analyzes the production and hedging decisions of a competitive firm under price uncertainty and time-inconsistent preferences. We show that the firm would over-hedge and the output choice would be affected by the firm's preferences and the price distribution, thereby identifying a...

Persistent link: https://www.econbiz.de/10013034222