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On the design of an optimal transfer schedule with time inconsistent preferences

Author

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  • Juan Carlos Chavez-Martin del Campo

    (Universidad de Guanajuato and Centro de Estudios de las Finanzas Publicas)

Abstract

This paper incorporates the phenomenon of time inconsistency into the problem of designing an optimal transfer schedule under income shocks and asymmetric information. The optimal solution reflects the dilemma that a principal has to face when playing the roles of self-control enforcer and consumption smoother simultaneously.

Suggested Citation

  • Juan Carlos Chavez-Martin del Campo, 2008. "On the design of an optimal transfer schedule with time inconsistent preferences," Economics Bulletin, AccessEcon, vol. 8(5), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-08h00003
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    References listed on IDEAS

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    More about this item

    Keywords

    Time Inconsistency;

    JEL classification:

    • H0 - Public Economics - - General
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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