We incorporate inferential expectations into the Barro-Gordon model (Barro and Gordon, 1983a) of time inconsistency and consider reputational equilibria. The range of sustainable equilibria shrinks as the private sector becomes more belief-conservative.

Public good contributions may be affected by the social demand to contribute that is implicit in them. Sensitivity to social pressure predicts behavior in paired dictator and money burning games; the evidence for effects on public good contribution is mixed.