Search Results - subject:"time inconsistency."

On policy interactions among nations: when do cooperation and commitment matter ?

Kempf, H.; Von Thadden, L. - Banque de France - 2008

This paper offers a framework to study commitment and cooperation issues in games with multiple policymakers. To reconcile some puzzles in the recent literature on the nature of policy interactions among nations, we prove that games characterized by different commitment and cooperation schemes...

Persistent link: https://www.econbiz.de/10008528498

Career Concerns and Ambiguity Aversion

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

Why do people have ambiguity aversion, preferring, a gamble with a 50% chance of success to one whose expected probability of success is 50% but where that 50% is an unbiased estimate? The answer modelled here, in the spirit of the career concerns literature, is learning: a risk-averse person...

Persistent link: https://www.econbiz.de/10005696167

The Design of Permit Schemes and Environmental Innovation

Perino, Grischa - Alfred-Weber-Institut für Wirtschaftswissenschaften, … - 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/10005150931

Statute Law or Case Law?

Anderlini, Luca; Felli, Leonardo; Riboni, Alessandro - CESifo - 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/10005181237

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/10005181875

Why Do Politicians Implement Central Bank Independence Reforms?

Daunfeldt, Sven-Olov; Hellström, Jörgen; Landström, Mats - Institutionen för Nationalekonomi, Umeå Universitet - 2008

It is something of a puzzle that politicians around the world have chosen to give up power to independent central banks, thereby reducing their possibilities to fine-tune the economy. In this paper the determinants of central bank independence (CBI) reforms are studied using a new data set on...

Persistent link: https://www.econbiz.de/10005198003

How Delegation Improves Commitment

Perino, Grischa - Alfred-Weber-Institut für Wirtschaftswissenschaften, … - 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/10005200597

Statute Law or Case Law?

Anderlini, Luca; Felli, Leonardo; Riboni, Alessandro - Suntory and Toyota International Centres for Economics … - 2008

Persistent link: https://www.econbiz.de/10008838689

Innovation and information acquisition under time inconsistency and uncertainty

Chemarin, Sophie; Orset, Caroline - HAL - 2008

This paper analyzes the impact of hyperbolic discounting preferences on theagent's information acquisition decision who wants to undertake a potentialdangerous activity for human health or the environment. We find that belowcertain discount rate threshold, an agent prefers ignoring information...

Persistent link: https://www.econbiz.de/10008793771

Learning Benevolent Leadership in a Heterogenous Agents Economy

Arifovic, Jasmina; Dawid, Herbert; Deissenberg, Christophe - HAL - 2008

This paper studies the potential commitment value of cheap talkinflation announcements in an agent-based dynamic extension of theKydland-Prescott model. In every period, the policy maker makesa non-binding inflation announcement before setting the actualinflation rate. It updates its decisions...

Persistent link: https://www.econbiz.de/10008794261