Skip to content Skip to navigation
University of Warwick
  • Study
  • |
  • Research
  • |
  • Business
  • |
  • Alumni
  • |
  • News
  • |
  • About

University of Warwick
Publications service & WRAP

Highlight your research

  • WRAP
    • Home
    • Search WRAP
    • Browse by Warwick Author
    • Browse WRAP by Year
    • Browse WRAP by Subject
    • Browse WRAP by Department
    • Browse WRAP by Funder
    • Browse Theses by Department
  • Publications Service
    • Home
    • Search Publications Service
    • Browse by Warwick Author
    • Browse Publications service by Year
    • Browse Publications service by Subject
    • Browse Publications service by Department
    • Browse Publications service by Funder
  • Help & Advice
University of Warwick

The Library

  • Login
  • Admin

Delegation, time inconsistency and sustainable equilibrium

Tools
- Tools
+ Tools

Basso, Henrique S. (2009) Delegation, time inconsistency and sustainable equilibrium. Journal of Economic Dynamics and Control, Vol.33 (No.8). pp. 1617-1629. doi:10.1016/j.jedc.2009.02.008

Research output not available from this repository, contact author.
Official URL: http://dx.doi.org/10.1016/j.jedc.2009.02.008

Request Changes to record.

Abstract

This paper analyzes the effectiveness of delegation in solving the time inconsistency problem of monetary policy using a microfounded general equilibrium model where delegation and reappointment are explicitly included into the government's strategy. The method of Chari and Kehoe [1990. Sustainable plans. Journal of Political Economy 98 (4), 783–802] is applied to characterize the entire set of sustainable outcomes. Countering McCallum's [1995. Two fallacies concerning central-bank independence. American Economic Review 85 (2), 207–211] second fallacy, delegation is able to eliminate the time inconsistency problem, with the commitment policy being sustained under discretion for any intertemporal discount rate

Item Type: Journal Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics
Journal or Publication Title: Journal of Economic Dynamics and Control
Publisher: Elsevier BV
ISSN: 0165-1889
Official Date: 2009
Dates:
DateEvent
2009Published
Volume: Vol.33
Number: No.8
Number of Pages: 13
Page Range: pp. 1617-1629
DOI: 10.1016/j.jedc.2009.02.008
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access
Funder: Economic and Social Research Council
Grant number: PTA-030-2003-01236

Request changes or add full text files to a record

Repository staff actions (login required)

View Item View Item
twitter

Email us: wrap@warwick.ac.uk
Contact Details
About Us