Time-Consistent Policies

Larry Karp and In Ho Lee

Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series from Department of Agricultural & Resource Economics, UC Berkeley

Abstract: 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.

Keywords: Time inconsistency; open-loop policies; stationarity (search for similar items in EconPapers)
Date: 2000-11-01
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Related works:
Journal Article: Time-consistent policies (2003)
Working Paper: Time-Consistent Policies (2003)
Working Paper: Time-Consistent Policies (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:cdl:agrebk:qt94q3m5mq

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