The source of time inconsistency in optimal plans

Kydland-Prescott (1977) and Calvo (1978) have argued that optimal dynamic plans are time inconsistent in general. It is shown that their demonstrations of this proposition are not valid. However, the proposition is correct because a later optimization problem always drops some condition required of...

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Xuất bản năm:Philippine Review of Economics and Business (formerly The Philippine Review of Business and Economics) Vol. XXX, no. 2 (Dec. 1993), 157-164
Tác giả chính: Encarnacion, Jose, Jr
Định dạng: Bài viết
Ngôn ngữ:English
Được phát hành: 1993
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