Gerlagh, Reyer; Liski, Matti - CESifo - 2011
? We consider if time-inconsistent decision-makers can gain from institutions that enforce cost-benefit rules on large … to investment biases in such assets. The institutionalized cost-benefit prudence eliminates such biases but we show that …-consistent, and decreases welfare otherwise. We find that the long-term cost-benefit prudence is fundamentally about income transfers …