Perino, Grischa - Alfred-Weber-Institut für Wirtschaftswissenschaften, … - 2008
We often use delegation as a commitment device if a government faces problems of timeinconsistency. McCallum (1995, AER … P&P) challenged this practice, claiming that delegation merely relocates the commitment problem but does not solve it …. In a model where delegation and specific policies are subject to the same commitment technology it is shown that McCallum …