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Optimal Monetary Policy when Agents are Learning
Molnár, Krisztina; Santoro, Sergio - CESifo - 2010
We derive the optimal monetary policy in a sticky price model when private agents follow adaptive learning. We show … order to facilitate private sector learning and thus ease the future intratemporal inflation-output gap trade-offs. The … policy recommendation is robust: the welfare loss entailed by the optimal policy under learning if the private sector …
Persistent link: https://www.econbiz.de/10008596587
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Compliance Dynamics Generated by Social Interaction Rules
Lipatov, Vilen - CESifo - 2014
We study compliance dynamics generated by a large set of behavioral rules describing social interaction in a population of agents facing an enforcement authority. When the authority adjusts the auditing probability every period, cycling in cheating-auditing occurs: Intensive monitoring induces...
Persistent link: https://www.econbiz.de/10010764298
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Policy Experimentation, Political Competition, and Heterogeneous Beliefs
Millner, Antony; Ollivier, Hélène; Simon, Leo - CESifo - 2014
endogenously influence whether learning occurs through its policy choices (policy experimentation), future political competition …
Persistent link: https://www.econbiz.de/10010781549
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On the Perils of Stabilizing Prices when Agents are Learning
Mele, Antonio; Molnár, Krisztina; Santoro, Sergio - CESifo - 2015
losses are outweighed by short term gains from the learning phase. …
Persistent link: https://www.econbiz.de/10011155373
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Reason, Intuition, and Time
Sahm, Marco; Weizsäcker, Robert K. von - CESifo - 2014
prevalent in early and late stages of a learning process, whereas reason governs decisions in intermediate stages. Examples …
Persistent link: https://www.econbiz.de/10011103391
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Strategic Experimentation: The Case of Poisson Bandits
Cripps, Martin W.; Keller, Godfrey; Rady, Sven - CESifo - 2002
This paper studies a game of strategic experimentation in which the players have access to two-armed bandits where the risky arm distributes lumpsum payoffs according to a Poisson process with unknown intensity. Because of free-riding, there is an inefficiently low level of experimentation in...
Persistent link: https://www.econbiz.de/10005051553
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The Commitment Role of Equity Financing
Fahn, Matthias; Merlo, Valeria; Wamser, Georg - CESifo - 2014
Existing theories of a firm’s optimal capital structure seem to fail in explaining why many healthy and profitable firms rely heavily on equity financing, even though benefits associated with debt (like tax shields) appear to be high and the bankruptcy risk low. This holds in particular for...
Persistent link: https://www.econbiz.de/10010877665
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Provision of a Public Good with Altruistic Overlapping Generations and Many Tribes
Karp, Larry S. - CESifo - 2012
Intergenerational altruism and contemporaneous cooperation are both important to the provision of long-lived public goods. Equilibrium climate protection may depend more sensitively on either of these considerations, depending on the type of policy rule one examines. This conclusion is based on...
Persistent link: https://www.econbiz.de/10010877869
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Battle for Climate and Scarcity Rents: Beyond the Linear-Quadratic Case
Kagan, Mark; Ploeg, Frederick Van der; Withagen, Cees A. - CESifo - 2014
The nature of oil demand influences the oil extraction rate and hence has implications for both the timing of oil exhaustion and optimal climate policy. We analyse what role oil demand specification plays in strategic interactions b between an oil-importing country producing final goods and...
Persistent link: https://www.econbiz.de/10011264740
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Tax Competition, Relative Performance and Policy Imitation
Wagener, Andreas - CESifo - 2009
Rather than about absolute payoffs, governments in fiscal competition often seem to care about their performance relative to other governments. Moreover, they often appear to mimic policies observed elsewhere. We study such behaviour in a tax competition game with mobile capital à la...
Persistent link: https://www.econbiz.de/10005013050