• Loose Commitment in Medium-Scale Macroeconomic Models: Theory and an Application 

      Debortoli, Davide; Maih, Junior; Nunes, Ricardo (Working Papers;25/2010, Working paper, 2010)
      This paper proposes a method and a toolkit for solving optimal policy with imperfect commitment in linear quadratic models. As opposed to the existing literature, our method can be employed in medium- and large-scale models ...