Time-inconsistent preferences and time-inconsistent policies

B-Tier
Journal: Journal of Mathematical Economics
Year: 2014
Volume: 51
Issue: C
Pages: 102-108

Authors (2)

Guo, Nick L. (Wheaton College) Caliendo, Frank N. (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Social security is commonly viewed as a commitment device for hyperbolic consumers. We argue that such common intuition is not consistent with formal economic theory. In a model where the government can choose either time-consistent or time-inconsistent policies to govern its social security arrangement and credit markets are complete, only a time-inconsistent policy achieves true commitment by hyperbolic consumers. This rules out a traditional social security program as a commitment device.

Technical Details

RePEc Handle
repec:eee:mateco:v:51:y:2014:i:c:p:102-108
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25