Time-Consistent Policies

In many cases the optimal open-loop policy to influence agents who solve dynamic problems is time-inconsistent. We show how to construct a time-consistent open-loop policy rule. We also consider an additional restriction under which the time-consistent open-loop policy is stationary. We use examples to illustrate the properties of these tax rules.


Subject(s):
Issue Date:
2000
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/6275
Total Pages:
28
JEL Codes:
C72; D83
Series Statement:
CUDARE Working Paper
919




 Record created 2017-04-01, last modified 2017-08-23

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