A complementary note on the issue of time inconsistency revisited as an extended game
Grégoire Rota-Graziosi
(1)
,
Hubert Kempf
(2, 3)
Grégoire Rota-Graziosi
- Fonction : Auteur
- PersonId : 21976
- IdHAL : gregoire-rota-graziosi
- ORCID : 0000-0002-9085-6974
- IdRef : 060913215
Hubert Kempf
- Fonction : Auteur
- PersonId : 888864
- ORCID : 0000-0003-2707-9655
- IdRef : 029594545
Résumé
Cellini and Lambertini endogenize through a timing game the moves of the central bank and the private sector in a model of monetary policy la Barro and Gordon. They find a multiplicity of equilibria, as the two Stackelberg outcomes emerge as the solutions of the timing game, with different inflation levels. By using the risk-dominance criterion to select the equilibrium we prove that there is a discontinuity in the inflation bias, depending on the inflation aversion of the private sector.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
A complementary note on the issue of time inconsistency revisited as an extended game
|
Résumé |
en
Cellini and Lambertini endogenize through a timing game the moves of the central bank and the private sector in a model of monetary policy la Barro and Gordon. They find a multiplicity of equilibria, as the two Stackelberg outcomes emerge as the solutions of the timing game, with different inflation levels. By using the risk-dominance criterion to select the equilibrium we prove that there is a discontinuity in the inflation bias, depending on the inflation aversion of the private sector.
|
Auteur(s) |
Grégoire Rota-Graziosi
1
, Hubert Kempf
2, 3
1
CERDI -
Centre d'Études et de Recherches sur le Développement International
( 945 )
- 65 boulevard François Mitterrand, 63009 Clermont-Ferrand
- France
2
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
3
CES -
Centre d'économie de la Sorbonne
( 15080 )
- Maison des Sciences Économiques - 106-112 Boulevard de l'Hôpital - 75647 Paris Cedex 13
- France
|
Date de publication |
2011
|
Volume |
13
|
Numéro |
4
|
Page/Identifiant |
475-480
|
Commentaire |
référence interne : A 2011.36
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Non spécifiée
|
Mots-clés (JEL) |
|
Domaine(s) |
|
Mots-clés |
en
Risk Dominance, Endogenous timing, first-second-mover advantage, monetary policy, time consistency
|
DOI | 10.1142/S0219198911003106 |
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