implement the commitment solution with constraints on transfers. Second, absent current competition, the possibility of future …

individuals can get involved in predation activities. Decisions about public policies concern the extent of fiscal redistribution … evolution of the economy in which both the political regimes and public policies are endogenously determined. The theory … delivers several novel results. Multiple politico-economic equilibria involving different public policies can be sustained …

government commitment is credible than in the dynamically consistent equilibrium without commitment. Commitment yields gains but …

We extend the model of Schultz (1996) to a dynamic setting with no policy commitment. Two parties that compete for … election must choose the level of provision of a public good as well as the tax payment needed to finance it. The cost of … in which the party that does not want much of the public good use the inefficient (high cost) technology even though the …

strategies. Without government commitment, there is an additional basis for intervention, whose sign depends on the strategic …

. Second, we show that the commitment (time inconsistent) solution does not normally involve zero inflation and output at its …, we show that the timeless perspective policy has the same steady state as the commitment case, but without any short …

This Paper studies an advantage of commitment over discretion when a central bank observes only noisy measures of … current inflation and output, in the context of an optimizing model with nominal-price stickiness. Under a commitment regime …

Commitment in monetary policy leads to equilibria that are superior to those from optimal discretionary policies. A … number of interest rate reaction functions and instrument rules have been proposed to implement or approximate commitment …