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Topic: Dynamic inconsistency

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	EXPLAINING THE POPULARITY OF BITS - V. THE DYNAMIC INCONSISTENCY PROBLEM
		[90] Dynamic inconsistency describes situations in which a "future policy decision that forms part of an optimal plan formulated at an initial date is no longer optimal from the viewpoint of a later date, even though no new information has appeared in the meantime."
		When the firm and the potential host begin negotiations regarding a potential investment, the firm is, of course, aware of the dynamic inconsistency problem.
		The dynamic inconsistency problem will discourage investment that would be desirable because the firm realizes that the host will squeeze additional value from the firm after the investment is made -- causing the firm to avoid certain investments altogether.
	www.jeanmonnetprogram.org /papers/97/97-12-V.html (3823 words)

	Dynamic inconsistency - Wikipedia, the free encyclopedia
		In economics, dynamic inconsistency, or time inconsistency, describes a situation where a decision-maker's preferences change over time, such that what is preferred at one point in time is inconsistent with what is preferred at another point in time.
		In the context of game theory, dynamic inconsistency is a situation in a dynamic game where a player's best plan for some future period will not be optimal when that future period arrives.
		In this context, the inconsistency is primarily about self control, and it relates to a variety of topics including procrastination, addiction, efforts at weight loss, and saving for retirement.
	en.wikipedia.org /wiki/Dynamic_inconsistency (1319 words)

	Greg Mankiw's Blog: Time Inconsistency
		Understanding that policymakers may be inconsistent over time, private decisionmakers are led to distrust policy announcements.
		Time inconsistency is illustrated most simply in a political rather than an economic example‑‑specifically, public policy about negotiating with terrorists over the release of hostages.
		Clearly this is dynamically inconsistent; no of them would believe that.
	gregmankiw.blogspot.com /2006/04/time-inconsistency.html (1298 words)

	Conference Program (Site not responding. Last check: 2007-09-06)
		Dynamic consistency is defined as the invariance of preference structure over the unfolding of events across time.
		Dynamic inconsistency has devastating ramifications for the notion of standard solutions of games played in extensive form and thus important consequences to the ability to predict economic behavior.
		Inconsistency is systematic: conservative changes of plans occur after winning and risky changes of plans occur after losing.
	www.vanderbilt.edu /smp98/program.html (13678 words)

	The value of decentralized information is always positive.
		New information appears to be a source of dynamic inconsistency, and commitment to initial tastes requires that new information be rejected.
		Research on the implications of inconsistent dynamic choice, as initiated by Strotz (1956), has traditionally suggested two ways of dealing with inconsistent planning: "precommitment" (implying the preemptive erasure of options) and "sophistication" (implying resignation to future tastes).
		Once this new source of dynamic inconsistency is acknowledged, the solutions that can be offered are different from mere precommitment and resignation.
	www.people.hbs.edu /lwathieu/process.htm (2420 words)

	JavaScript Kit DHTML/ CSS tutorials
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		One of the great nuisances of using JavaScript to display content on demand is the requirement that everything be contained in variables.
		Dynamic Properties is a relatively unknown feature of IE5+ that allows you to substitute static values in your HTML with dynamic expressions instead.
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	Current Issues in the Design and Conduct of Monetary Policy, By Mohsin S. Khan, Director, IMF Institute
		After discussing the general role of monetary policy, in particular its objectives, targets, and instruments, it will then address two particular issues—dynamic inconsistency and rules versus discretion—that are relevant because many countries have weak institutions and poor credibility of their monetary policy actions.
		Dynamic inconsistency refers to the difference between the optimal policies that a central bank would announce if they were considered credible by the public, and the policies that the central bank would carry out after the public had made decisions on the basis of its expectations.
		A number of countries have successfully resorted to pegging the exchange rate in order to overcome the dynamic inconsistency problem, but it must be emphasized that this mechanism is also not exempted completely from a similar dynamic inconsistency problem.
	www.imf.org /external/np/speeches/2003/013003.htm (6390 words)

	CEPR Discussion Paper Abstracts (Site not responding. Last check: 2007-09-06)
		Dynamic inconsistency provides a theoretical basis for discussions of policy credibility: when the government cannot commit its future policies, the incentive to deviate from the 'optimal' plan renders it incredible.
		We derive the best policy in the absence of precommitment as the feedback Nash solution to a dynamic game between the government and a private sector composed of small agents.
		The solution is dynamically consistent by construction, and therefore credible.
	www.cepr.org /Pubs/new-dps/dplist.asp?dpno=63 (212 words)

	Waiting for Policy Rules (Site not responding. Last check: 2007-09-06)
		The need for commitment also applies to governments and central banks; as both face temptations to act at a given moment in ways that run counter to their long-range goals, commitments or rules provide a means of resisting temptation and staying the course.
		The long-term plan (that’s the dynamic part) is inconsistent because what looks best in the short run, when the choice is made, does not add up to what is best in the long run.
		The perspective of dynamic inconsistency produces an important insight: rules are often better than discretion for achieving goals requiring a lot of discipline.
	www.clevelandfed.org /research/com2000/0115.htm (3428 words)

	(Cite as: 38 Va
		as may be mutually agreed between the parties to the dispute." [FN74] Arbitration effectively solves the dynamic inconsistency problem discussed in Part IV below because it allows disputes to be settled in a binding fashion and in a neutral forum.
		As a result of the dynamic inconsistency problem, when an investor enters into an agreement with a host nation, the two typically will not be able reach the optimal agreement.
		[FN91] The dynamic inconsistency problem, however, undermines efficiency because it discourages investment that would be desirable.
	www.law.berkeley.edu /faculty/guzmana/writing/bits.html (10478 words)

	Varying Time Preference
		This means that the "plans" that generation 0 sets for generation 1 (and all subsequent generations) are not followed by generation 1 when the time arrives, who go on to develop their own distinct plans instead.
		The ethical implications of this "time inconsistency" in a dynasty are, however, a bit harder to distentangle.
		Harl Ryder and Geoffrey Heal (1973) have incorporated changing time preferences into an optimal growth model and shown that the resulting dynamics can be quite complicated.
	cepa.newschool.edu /~het/essays/growth/optimal/hyperbolic.htm (1099 words)

	Intertemporal Justice
		Kenneth J. Arrow (1973) and Partha Dasgupta (1974), who started on this track, claimed that the dynastic Rawlsian form would yield dynamic inconsistency and "it is at least questionable that the sawtooth pattern [of dynastic inconsistency] corresponds to any intuitive idea of justice" (Arrow, 1973).
		Now, Calvo (1978) shows that while dynamic inconsistency is possible it is not necessarily the result.
		If we are maximizing the pure sum of utilities without discounting, then it would not be inconsistent for the father to split the cake equally with his son.
	cepa.newschool.edu /~het/essays/growth/optimal/rawlsian.htm (1413 words)

	econ7344-topic-3_5_1
		Time inconsistency arises whenever (i) agents' actions today depend on the policymakers action tomorrow, (ii) the agents' action a affects the policymaker's social welfare function, and (iii) there is no commitment technology through which a policymaker can tie itself to announced policies.
		The essence of the papers is (i) that time-consistent policies are inferior to the optimal, commitment policy, (ii) optimal control, which implicitly assumes there is a commitment technology, will often yield incorrect predicts about policy choices.
		Rogoff's paper is a nice piece that explains how time inconsistency can make it in our interests to appoint a central banker who is more conservative than society.
	www.fiu.edu /~thompsop/macro2/shortrun/time_inconsistency.html (505 words)

	Dynamic inconsistency, tradeoffs and delegation in a developing economy
		Dynamic inconsistency, tradeoffs and delegation in a developing economy
		It then examines the role that delegation can play in resolving the inefficiencies, finally the paper finds some initial empirical support for the hypotheses of the paper, from Indian experience.
		The findings of the paper challenge the accepted conclusions in the dynamic inconsistency literature which state that delegation of monetary policy to a more conservative central banker will raise social welfare.
	www.eldis.org /static/DOC2909.htm (252 words)

	Slavoj Zizek [Internet Encyclopedia of Philosophy]
		The man adduces mutually inconsistent excuses which are united only in terms of his ignoble desire, which is to evade responsibility for breaking the kettle he never borrowed the kettle, the kettle was already broken when he borrowed it, and when he gave the kettle back it was not really broken anyway.
		When political strife, uncertainty or division occur, political ideologies and the fundamental fantasies upon which they lean (3a) operate to resignify this political discontent so that the political ideal of community can be sustained, and to deny the possibility that this discontent might signal a fundamental injustice or flaw within the regime.
		What Zizek’s Lacanian critique of ideology aims to do is to demonstrate such inconsistencies, and thereby to show us that the objects most central to our political beliefs are Things whose very sublime appearance conceals from us our active agency in constructing and sustaining them.
	www.iep.utm.edu /z/zizek.htm (10966 words)

	CRA International - antitrust consultants, business consultants, finance consulting - blications Search Results
		As a result of this dynamic inconsistency, efforts to address climate change by imposing caps or taxes in the near-term will fail to provide an adequate credible incentive for the research and development (R&D) necessary to lower the cost of long-term reductions.
		At last year’s Eastern conference in Providence, Rhode Island, we presented a paper that showed that dynamic pricing in mass markets could yield efficiency gains on the order of half a billion to a billion dollars per utility, measured in net present value terms over a 10-year period.
		In this paper, we discuss an experiment with dynamic pricing that is being implemented by California’s three investor-owned utilities, in response to an order from the California Public Utilities Commission.
	www.crai.com /AllPubs.asp?parentid=31 (1609 words)

	FRB: FEDS paper 1999-42 (Site not responding. Last check: 2007-09-06)
		Abstract: This paper investigates the desirability of adopting a rule in favor of discretionary monetary policy in a model exhibiting Kydland and Prescott's dynamic inconsistency problem.
		We deviate from earlier work by adopting assumptions regarding policymaker preferences and inflation dynamics that are compatible with empirically motivated models used for macroeconomic policy evaluation.
		This result provides a reconciliation of the theory regarding the optimality of adopting a rule with the empirical observation that policymakers appear more willing to abandon discretion when facing either low credibility or high inflation but are less inclined to do so otherwise.
	www.federalreserve.gov /pubs/feds/1999/199942/199942abs.html (246 words)

	JavaScript Kit- Comprehensive JavaScript, DHTML, CSS tutorials and over 400+ free JavaScripts!
		I've just updated the tutorial on Dynamic Properties (aka Expressions) in IE with whole new examples and info on how a page's doctype affects its syntax.
		David provides a detailed look at your various options when it comes to CSS hacks to fix those browser inconsistency woes, even in IE7.
		This tutorial looks at how to use Ajax to dynamically include the contents of an external page onto the current one automatically each time the page is requested.
	www.javascriptkit.com (825 words)

	freebsd-stable: By Thread
		Re: 4.9-Stable DHCP and dynamic DNS updates Oliver Brandmueller
		Re: 4.9-Stable DHCP and dynamic DNS updates S.
		Re: 4.9-Stable DHCP and dynamic DNS updates Tony Sequeira
	unix.derkeiler.com /Mailing-Lists/FreeBSD/stable/2004-03 (2412 words)

	SSRN-A Game Theoretic Analysis of Tariffs, Dynamic Inconsistency, Resource Conservation, and Trade by Amitrajeet ...
		In this setting, it is shown that the efficacy of the unit tariff in promoting conservation depends fundamentally on whether harvesting costs are stock dependent or independent.
		When harvesting costs are stock independent (dependent), the optimal open loop unit tariff is dynamically consistent (inconsistent).
		Batabyal, Amitrajeet A., "A Game Theoretic Analysis of Tariffs, Dynamic Inconsistency, Resource Conservation, and Trade" (April 2005).
	papers.ssrn.com /sol3/papers.cfm?abstract_id=703823 (327 words)

	[No title] (Site not responding. Last check: 2007-09-06)
		Be able to do the calculus to solve a dynamic inconsistency problem, if I hand you a Lucas supply curve and a welfare loss function.
		Name the realistic examples of dynamic inconsistency in government policy.
		In each case, explain how the government could eliminate the dynamic inconsistency if it could just make a “credible commitment.” How could a real-world government make such a credible commitment?
	www.siue.edu /~garjone/finrev.doc (1035 words)

	UnEarthed.Com : Bands : Zdeth
		The music is mostly guitar driven, with melodic bass lines that add a dark and dissonant feel to the ‘metalcore’ like heavy riffs.
		Creative and intricate drum parts add to the alternative feel of the songs and the many dynamic and rhythmic changes can lead their songs from a fast soft emotional sound to full out slow and powerful heaviness.
		The vocals also represent dynamic inconsistency, as the lyrics can be heard being softly sung or spoken, to being screamed viciously in the style of contemporary, hardcore and screamo.
	www.unearthed.com /bands/Z/band4940.shtml (342 words)

	New Gibraltar Encyclopedia of Progressive Rock O
		Unlike traditional death metal, where there's a clear division between low-end riffing and solos, Opeth dwell in rich polyphonic textures and haunting harmonic progressions; electric and acoustic guitar patterns are intertwined and have an equal importance to the compositions.
		The notable songs are "Under the Weeping Moon" with its simple and surprising acoustic/psychedelic breaks, the dynamic and intense piano piece "Silhouette" and the most hypnotic track - "Forest of October".
		Overall, this album is OK for a casual listen, but in the end it's too meandering, and most of the dynamic of the first album is lost.
	www.gepr.net /o.html (13563 words)

	Morgan Stanley (Site not responding. Last check: 2007-09-06)
		The ECOFIN meeting and the risk of time inconsistency in economic policy.
		The theory of dynamic inconsistency has found since then applications in a number of fields that goes beyond the management of monetary policy. The ECOFIN meeting held in
		Quite interestingly, Kydland and Prescott’s analysis shows that one possible approach to address the issue of dynamic inconsistency in economic policy is through the adoption of rules as opposed to discretionary outcomes.
	www.morganstanley.com /GEFdata/digests/20041022-fri.html (1562 words)

	[No title]
		2002-2005: BARD, "The Dynamic of Off-Farm Employment, Farm Size, and Farm Structure", (with Ayal Kimhi, Barry Goodwin and Ashok Mishra).
		With G. piro, “Specification Search in Nonlinear Time-Series Models using the Genetic Algorithm”, Journal of Economic Dynamics and Control, 26: 811-835, 2002.
		Uncoupled Dynamics Cannot Lead to Nash Equilibrium The Hebrew University of Jerusalem, Center for Rationality DP-299.(with Andreu Mas-Colell).
	social.huji.ac.il /eco.htm (6824 words)

	Aaron and Burtless (1989) Fiscal Policy and the Dynamic Inconsistency of Social Security Forecasts
		Aaron and Burtless (1989) Fiscal Policy and the Dynamic Inconsistency of Social Security Forecasts
		Fiscal Policy and the Dynamic Inconsistency of Social Security Forecasts
		To view the the latter's ratings, click on Chapters/Papers/Articles in the STATISTICS box, select a publication from the list that appears, and then click on either Quality or Interest in that publication's STATISTICS box.
	www.getcited.org /?PUB=103355923&showStat=Ratings (89 words)

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