Search Results - subject:"time inconsistency."

Perino, Grischa - 2008

We often use delegation as a commitment device if a government faces problems of timeinconsistency. McCallum (1995, AER P&P) challenged this practice, claiming that delegation merely relocates the commitment problem but does not solve it. In a model where delegation and specific policies are...

Persistent link: https://www.econbiz.de/10011422169

The Design of Permit Schemes and Environmental Innovation

Perino, Grischa - 2008

Most real world emission permit schemes are in effect hybrid instruments that feature both quantity and price controls. While the effects of price bounds are well understood for issues such as uncertain abatement costs it has not been investigated how such bounds affect time-consistency of...

Persistent link: https://www.econbiz.de/10011422174

Internalities and Paternalism: Applying the Compensation Criterion to Multiple Selves across Time

Rasmusen, Eric - Department of Business Economics and Public Policy, … - 2008

One reason to call an activity a vice and suppress it is that it reduces a person’s future happiness more than it increases his present happiness. Gruber and Koszegi (2001) show how a vice tax can increase a person’s welfare in a model of multiple selves with hyperbolic preferences across...

Persistent link: https://www.econbiz.de/10005453597

Some Common Confusions about Hyperbolic Discounting

Rasmusen, Eric - Department of Business Economics and Public Policy, … - 2008

There is much confusion over what "hyperbolic discounting" means. I argue that what matters is the use of relativistic instead of objective time, not the shape of the discount function.

Persistent link: https://www.econbiz.de/10005453605

Statute law or case law?

Anderlini, Luca; Felli, Leonardo; Riboni, A. - London School of Economics (LSE) - 2008

the time-inconsistency problem afflicting the Case Law Courts, but is costly because of its lack of flexibility. We find …

Persistent link: https://www.econbiz.de/10010746104

On the design of an optimal transfer schedule with time inconsistent preferences

Campo, Juan Carlos Chavez-Martin del - In: Economics Bulletin 8 (2008) 5, pp. 1-7

This paper incorporates the phenomenon of time inconsistency into the problem of designing an optimal transfer schedule …

Persistent link: https://www.econbiz.de/10010836240

Statute Law or Case Law?

Anderlini, Luca; Felli, Leonardo; Riboni, Alessandro - Collegio Carlo Alberto, Università degli Studi di Torino - 2008

the potential for time-inconsistency. Under Case Law, Courts may be tempted to behave myopically and neglect ex … matures this temptation prevails and Case Law Courts succumb to the time-inconsistency problem. Statute Law, on the other hand … pairs the lack of flexibility with the ability to commit in advance to a given (forward looking) rule. This solves the time-inconsistency …

Persistent link: https://www.econbiz.de/10005013908

Innovation and Information Acquisition Under Time Inconsistency and Uncertainty

Chemarin, Sophie; Orset, Caroline - Centre Interuniversitaire sur le Risque, les Politiques … - 2008

We propose to analyse the hyperbolic discounting preferences effect on the innovator's research investment decision. Investing in research allows him to acquire information, and then to reduce the uncertainty of the risks of his project. We find that whatever the innovator's preferences, that is...

Persistent link: https://www.econbiz.de/10005015222

Goal Setting as a Self-Regulation Mechanism

Suvorov, Anton; Ven, Jeroen van de - Center for Economic and Financial Research (CEFIR), New … - 2008

We develop a theory of self-regulation based on goal setting for an agent with present-biased preferences. Preferences are assumed to be reference-dependent and exhibit loss aversion, as in prospect theory. The reference point is determined endogenously as an optimal self-sustaining goal. The...

Persistent link: https://www.econbiz.de/10005086545

Know Thyself: Self Awareness and Utility Misprediction in Discounting Models of Intertemporal Choice

Savorelli, Luca - Associazione Italiana per la Cultura della Cooperazione … - 2008

This review critically discusses the theoretical models of discounting through a selection of papers. It will focus on the comparison between the two major models, namely discounted utility and hyperbolic discounting. This paper differs from previous surveys in the attention given to the...

Persistent link: https://www.econbiz.de/10005069874