The Resource Commitment vs. flexibility, Manuel Amador, Ivan Werning [and] George Marios Angeletos., (electronic resource)

Commitment vs. flexibility, Manuel Amador, Ivan Werning [and] George Marios Angeletos., (electronic resource)

Label
Commitment vs. flexibility
Title
Commitment vs. flexibility
Statement of responsibility
Manuel Amador, Ivan Werning [and] George Marios Angeletos.
Title variation
Commitment versus flexibility
Creator
Contributor
Provider
Subject
Language
eng
Summary
This paper studies the optimal trade-off between commitment and flexibility in an intertemporal consumption/savings choice model. Individuals expect to receive relevant information regarding their own situation and tastes - generating a value for flexibility - but also expect to suffer from temptations - generating a value for commitment. The model combines the representations of preferences for flexibility introduced by Kreps (1979) with its recent antithesis for commitment proposed by Gul and Pesendorfer (2002), which nests the hyperbolic discounting model. We set up and solve a mechanism design problem that optimizes over the set of consumption/saving options available to the individual each period. We characterize the conditions under which the solution takes a simple threshold form where minimum savings policies are optimal. Our analysis is also relevant for other issues such as situations with externalities or the problem faced by a paternalistic planner, which may be important for thinking about some regulations such as forced minimum schooling laws. Keywords: Banking and credit, English Industrial Revolution, interest rate determination, credit rationing, technological change and learning. JEL Classifications: D82, E21, E61, D91, H55
Member of
Additional physical form
Abstract in HTML and working paper for download in PDF available via World Wide Web at the Social Science Research Network.
Cataloging source
MYG
http://library.link/vocab/creatorName
Amador, Manuel
Index
no index present
Literary form
non fiction
Nature of contents
  • bibliography
  • technical reports
http://library.link/vocab/relatedWorkOrContributorName
  • Werning, Ivn
  • Angeletos, Marios
  • Massachusetts Institute of Technology
  • Internet Archive
Series statement
Working paper series / Massachusetts Institute of Technology, Dept. of Economics
Series volume
working paper 03-40
http://library.link/vocab/subjectName
  • Saving and investment
  • Consumption (Economics)
Label
Commitment vs. flexibility, Manuel Amador, Ivan Werning [and] George Marios Angeletos., (electronic resource)
Instantiates
Publication
Note
"November 15, 2003."
Bibliography note
Includes bibliographical references (p. 40-42)
Dimensions
28 cm.
Extent
42 p.
Specific material designation
remote
System control number
  • (OCoLC)55791898
  • (CaSfIA)commitmentvsflex00amad
  • (CaSfIA)001264908
Label
Commitment vs. flexibility, Manuel Amador, Ivan Werning [and] George Marios Angeletos., (electronic resource)
Publication
Note
"November 15, 2003."
Bibliography note
Includes bibliographical references (p. 40-42)
Dimensions
28 cm.
Extent
42 p.
Specific material designation
remote
System control number
  • (OCoLC)55791898
  • (CaSfIA)commitmentvsflex00amad
  • (CaSfIA)001264908

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