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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Date of creation: 01 Nov 2000
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Time inconsistency; open-loop policies; stationarity;
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