change is needed. The rigid system is preferable at early stages of technological development, when (lack of) commitment …

-specific budgets depends on the combination of a demand for commitment and the demand for flexibility resulting from uncertainty about … with minimum-savings rules (another widely-studied form of commitment), and how budgeting depends on the intensity of self …

redistributive concerns to the trade-off between commitment and flexibility. When a majority of citizens invest, redistributive … commitment. We study policymakers' incentives to commit. A policymaker decides on a policy to encourage citizens to make … investments and determines the degree of flexibility to change the policy after investments have been made. This adds …

of the induced balance between commitment and flexibility. …We study a dynamic model of monopolistic provision of commitment devices to sophisticated, Strotzian decision makers …. We allow for unobservable heterogeneity at the contracting stage in the agents' preferences for commitment vs …

function under commitment. We consider two alternative specifications for the loss function. The first specification includes … we are faced with the time-inconsistency problem under commitment, we initialize our estimates by considering a presample …

This paper proposes a method and a toolkit for solving optimal policy with imperfect commitment in linear quadratic … monetary policy. We apply our method to the Smets and Wouters (2007) model, where we show that imperfect commitment has …

-looking. Specifically, optimal monetary policy under commitment is associated with a determinate REE that is stable under learning, whereas …

investment. For the first case, we find that even absent asymmetric information, a lack of regulatory commitment can cause …