| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP12656 |
| DP12656 Time-Consistently Undominated Policies | |
| Charles Brendon; Martin Ellison | |
| 发表日期 | 2018-01-26 |
| 出版年 | 2018 |
| 语种 | 英语 |
| 摘要 | This paper proposes and characterises a new normative solution concept for Kydland and Prescott problems, allowing for a commitment device. A policy choice is dominated if either (a) an alternative exists that is superior to it in a time-consistent subdomain of the constraint set, or (b) an alternative exists that Pareto-dominates it over time. Policies may be time-consistently undominated where time-consistent optimality is not possible. We derive necessary and sufficient conditions for this to be true, and show that these are equivalent to a straightforward but significant change to the first-order conditions that apply under Ramsey policy. Time-consistently undominated policies are an order of magnitude simpler than Ramsey choice, whilst retaining normative appeal. This is illustrated across a range of examples. |
| 主题 | Monetary Economics and Fluctuations |
| 关键词 | Time consistency Undominated policy Ramsey policy |
| URL | https://cepr.org/publications/dp12656 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/541468 |
| 推荐引用方式 GB/T 7714 | Charles Brendon,Martin Ellison. DP12656 Time-Consistently Undominated Policies. 2018. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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