Markov Perfect Equilibrium

2001 ◽  
Vol 100 (2) ◽  
pp. 191-219 ◽  
Author(s):  
Eric Maskin ◽  
Jean Tirole
Keyword(s):  
Perfect Equilibrium ◽  
Markov Perfect Equilibrium ◽  
Markov Perfect

scholarly journals DEBT AND DEFICIT FLUCTUATIONS IN A TIME-CONSISTENT SETUP

2015 ◽  
Vol 20 (7) ◽  
pp. 1771-1794 ◽  
Author(s):  
Daryna Grechyna
Keyword(s):  
Fiscal Policy ◽  
Utility Function ◽  
Perfect Equilibrium ◽  
Markov Perfect Equilibrium ◽  
Stochastic Behavior ◽  
Ramsey Problem ◽  
Markov Perfect ◽  
Optimal Fiscal Policy ◽  
The Government ◽  
Public Bonds

This paper compares the stochastic behavior of fiscal variables under optimal fiscal policy for the cases of full commitment by the government (Ramsey problem) and no commitment by the government (focusing on differentiable Markov perfect equilibrium). It shows that the cyclical properties of fiscal variables are similar for both commitment assumptions. These conclusions are robust to two different specifications of the structure of public bonds (risk-free and state-contingent) and to different sets of the parameters. The cyclical properties of fiscal variables, regardless of commitment assumptions, can be determined by the parameters of the utility function.

scholarly journals Generalisations of Quasi-Hyperbolic Discounting

2021 ◽  
Author(s):  
◽  
Shanella Rajanayagam
Keyword(s):  
Exact Solution ◽  
Time Preference ◽  
Hyperbolic Discounting ◽  
Time Preferences ◽  
Perfect Equilibrium ◽  
Markov Perfect Equilibrium ◽  
Recursive Formulation ◽  
Markov Perfect

<p>This paper proposes several time preference specifications that generalise quasi-hyperbolic discounting, while retaining its analytical tractability. We define their discount functions and provide a recursive formulation of the implied lifetime payoffs. A calibration exercise demonstrates that these specifications deliver better approximations to true hyperbolic discounting. We characterise the Markov-perfect equilibrium of a general intra-personal game of agents with various time preferences. When applied to specific economic examples, our proposals yield policies that are close to those of true hyperbolic discounters. Furthermore, these approximations can be used in settings where an exact solution for hyperbolic agents is not available. Finally, we suggest further generalisations which would provide an even better fit.</p>

Markov perfect equilibrium in multi-period games between sponsor and bureau

Public Choice ◽  
1994 ◽  
Vol 79 (3-4) ◽  
pp. 257-280 ◽  
Author(s):  
Fredrik Carlsen ◽  
Kjetil Haugen
Keyword(s):  
Perfect Equilibrium ◽  
Markov Perfect Equilibrium ◽  
Markov Perfect

scholarly journals The Dynamics of Disease in a Regulated Vertically Differentiated Health System

2016 ◽  
Vol 7 (2) ◽  
pp. 157-172
Author(s):  
Luca Lambertini ◽  
Alessandro Tampieri
Keyword(s):  
Health Care ◽  
Health System ◽  
Differential Game ◽  
Quality Of Health Care ◽  
Price Regulation ◽  
Perfect Equilibrium ◽  
Markov Perfect Equilibrium ◽  
Parameter Region ◽  
Markov Perfect

We build up a differential game to investigate the interplay between the quality of health care and the presence of an evolving disease in a duopoly where patients are heterogeneous along the income dimension. We study the Markov perfect equilibrium, and we identify the admissible parameter region wherein price regulation achieves the twofold objectives of ensuring cares to all patients and heal all of them.

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