AbstractIn 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.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 112 (2003)
Issue (Month): 2 (October)
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Web page: http://www.elsevier.com/locate/inca/622869
Other versions of this item:
- Karp, Larry S. & Lee, In Ho, 2000. "Time-consistent policies," CUDARE Working Paper Series 919, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Karp, Larry & Lee, In Ho, 2000. "Time-Consistent Policies," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt94q3m5mq, Department of Agricultural & Resource Economics, UC Berkeley.
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