Bailouts, Time Inconsistency, and Optimal Regulation: A Macroeconomic View
نویسندگان
چکیده
منابع مشابه
Bailouts, Time Inconsistency, and Optimal Regulation
We make three points. First, ex ante e¢ cient contracts often require ex post ine¢ ciency. Second, the time inconsistency problem for the government is more severe than for private agents because re sale e¤ects give governments stronger incentives to renegotiate contracts than private agents. Third, given that the government cannot commit itself to not bailing out rms ex post, ex ante regulat...
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ژورنال
عنوان ژورنال: American Economic Review
سال: 2016
ISSN: 0002-8282
DOI: 10.1257/aer.20150157