We consider a representative-agent equilibrium model where the consumer has quasi-geometric discounting and cannot commit to future actions. We restrict attention to a parametric class for preferences and technology and solve for time-consistent competitive equilibria globally and explicitly. We...

We analyze a general-equilibrium asset pricing model where a small subset of the consumers/investors have a short-run ldquo;urge to saverdquo;. That is, their attitude toward consumption in the long run is a standard one they do place zero weight on consumption far enough out in the future but...

We study optimal taxation when consumers have temptation and self-control problems. Embedding the class of preferences developed by Gul and Pesendorfer into a standard macroeconomic setting, we first prove, in a two-period model, that the optimal policy is to subsidize savings when consumers...