On the notion of time-consistency: A comment
It is the purpose of this paper to show that the concept of time-consistency is not uniquely defined in the economics literature. In non-causal models Holly and Zarrop's (1983) time-consistency concept differs from the corresponding concept by Kydland and Prescott (1977). A policy sequence, whi...
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Veröffentlicht in: | European economic review 1989-07, Vol.33 (6), p.1283-1288 |
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Hauptverfasser: | , |
Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | It is the purpose of this paper to show that the concept of time-consistency is not uniquely defined in the economics literature. In non-causal models Holly and Zarrop's (1983) time-consistency concept differs from the corresponding concept by Kydland and Prescott (1977). A policy sequence, which according to Kydland and Prescott is time-consistent, is time-inconsistent in Holly and Zarrop's terms, whereas a plan, which is consistent in the sense of Holly and Zarrop, is inconsistent in the sense of Kydland and Prescott. |
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ISSN: | 0014-2921 1873-572X |
DOI: | 10.1016/0014-2921(89)90098-6 |