Recursive Contracts

DOI10.3982/ECTA9902zbMath1431.91202OpenAlexW4248918866MaRDI QIDQ5214112

Ramon Marimon, Albert Marcet

Publication date: 7 February 2020

Published in: Econometrica (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.3982/ecta9902

zbMATH Keywords

Lagrangian multipliersdynamic optimizationsaddle-pointstime inconsistencylimited commitmentBellman equationsrecursive methodsRamsey equilibriumlimited enforcement

Mathematics Subject Classification ID

Economic dynamics (91B55) Contract theory (moral hazard, adverse selection) (91B41)

Related Items

On the recursive saddle point method ⋮ Ruling out multiplicity of smooth equilibria in dynamic games: a hyperbolic discounting example ⋮ Robust control with commitment: a modification to Hansen-Sargent ⋮ Ruling out speculative hyperinflations ⋮ Dynamic costs and moral hazard: a duality-based approach ⋮ Scoring a goal optimally in a soccer game under Liouville-like quantum gravity action ⋮ A protocol for repeated bargaining ⋮ Credible forward guidance ⋮ Doubts about the model and optimal policy ⋮ Optimal lock-down intensity: a stochastic pandemic control approach of path integral ⋮ Sustaining Ramsey plans with one-period bonds ⋮ Optimal self-financing microfinance contracts when borrowers have risk aversion and limited commitment ⋮ The envelope theorem, Euler and Bellman equations, without differentiability ⋮ Optimal target criteria for stabilization policy ⋮ Investment and bilateral insurance ⋮ Time consistent Markov policies in dynamic economies with quasi-hyperbolic consumers ⋮ Endogenous borrowing constraints and stagnation in Latin America