Barro-Gordon revisited: Reputational equilibria with inferential expectations

Timo Henckel; Gordon D. Menzies; Nick Prokhovnik; Daniel J. Zizzo

doi:10.1016/j.econlet.2011.03.031

Barro-Gordon revisited: Reputational equilibria with inferential expectations

Timo Henckel, Gordon D. Menzies, Nick Prokhovnik, Daniel J. Zizzo

School of Economics

Research output: Contribution to journal › Article › peer-review

3 Citations (Scopus)

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.

Original language	English
Pages (from-to)	144-147
Number of pages	4
Journal	Economic Letters
Volume	112
Issue number	2
DOIs	https://doi.org/10.1016/j.econlet.2011.03.031
Publication status	Published - 2011

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10.1016/j.econlet.2011.03.031

Cite this

@article{a74775a7a22847119264daa47590633a,

title = "Barro-Gordon revisited: Reputational equilibria with inferential expectations",

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.",

author = "Timo Henckel and Menzies, {Gordon D.} and Nick Prokhovnik and Zizzo, {Daniel J.}",

year = "2011",

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language = "English",

volume = "112",

pages = "144--147",

journal = "Economic Letters",

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AU - Henckel, Timo

AU - Menzies, Gordon D.

AU - Prokhovnik, Nick

AU - Zizzo, Daniel J.

PY - 2011

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N2 - 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.

AB - 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.

U2 - 10.1016/j.econlet.2011.03.031

DO - 10.1016/j.econlet.2011.03.031

M3 - Article

VL - 112

SP - 144

EP - 147

JO - Economic Letters

JF - Economic Letters

IS - 2

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