Forteza, Alvaro; Noboa, Cecilia - Departamento de Economía, Facultad de Ciencias Sociales - 2014
macroeconomics, commitment to fully contingent rules is better than discretion, but when the government can only commit to simple … discretion and commitment to a simple rule in the context of social protection, showing when and why discretion may be better … than commitment. We argue that the forces highlighted in our model can provide a rationale for several highly distortive …