Comment on "Commitment vs. Flexibility"
Publication
, Journal Article
Ambrus, A; Egorov, G
Published in: Econometrica
January 1, 2013
This comment corrects two results in the 2006 Econometrica paper by Amador, Werning, and Angeletos (AWA), that features a model in which individuals face a trade-off between flexibility and commitment. First, in contrast to Proposition 1 in AWA, we show that money-burning can be part of the ex ante optimal contract when there are two states. Second, in contrast to Proposition 2 in AWA, we show that money-burning can be imposed at the top (in the highest liquidity shock state), even when there is a continuum of states. We provide corrected versions of the above results. © 2013 The Econometric Society.
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Published In
Econometrica
DOI
EISSN
1468-0262
ISSN
0012-9682
Publication Date
January 1, 2013
Volume
81
Issue
5
Start / End Page
2113 / 2124
Related Subject Headings
- Econometrics
- 3803 Economic theory
- 3802 Econometrics
- 3801 Applied economics
- 1403 Econometrics
- 1402 Applied Economics
- 1401 Economic Theory
Citation
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MLA
NLM
Ambrus, A., & Egorov, G. (2013). Comment on "Commitment vs. Flexibility". Econometrica, 81(5), 2113–2124. https://doi.org/10.3982/ECTA10739
Ambrus, A., and G. Egorov. “Comment on "Commitment vs. Flexibility".” Econometrica 81, no. 5 (January 1, 2013): 2113–24. https://doi.org/10.3982/ECTA10739.
Ambrus A, Egorov G. Comment on "Commitment vs. Flexibility". Econometrica. 2013 Jan 1;81(5):2113–24.
Ambrus, A., and G. Egorov. “Comment on "Commitment vs. Flexibility".” Econometrica, vol. 81, no. 5, Jan. 2013, pp. 2113–24. Scopus, doi:10.3982/ECTA10739.
Ambrus A, Egorov G. Comment on "Commitment vs. Flexibility". Econometrica. 2013 Jan 1;81(5):2113–2124.
Published In
Econometrica
DOI
EISSN
1468-0262
ISSN
0012-9682
Publication Date
January 1, 2013
Volume
81
Issue
5
Start / End Page
2113 / 2124
Related Subject Headings
- Econometrics
- 3803 Economic theory
- 3802 Econometrics
- 3801 Applied economics
- 1403 Econometrics
- 1402 Applied Economics
- 1401 Economic Theory