Barro-Gordon revisited: Reputational equilibria with inferential expectations

Date

2011

Authors

Henckel, Timo
Menzies, Gordon
Prokhovnik, Nick
Zizzo, Daniel

Journal Title

Journal ISSN

Volume Title

Publisher

Elsevier

Abstract

We incorporate inferential expectations into the Barro-Gordon model (Barro and Gordon, 1983a) of time inconsistency and consider reputational equilibria. The range of sustainable equilibria shrinks as the private sector becomes more belief-conservative.

Description

Keywords

Keywords: Credibility; Inferential expectations; Reputation; Time inconsistency

Citation

Source

Economics Letters

Type

Journal article

Book Title

Entity type

Access Statement

License Rights

Restricted until

2037-12-31