Past Events

Credibility Conference in Santa Barbara

  • Dates: 14 - 15 Nov, 2019 4:00 PM - 4:00 PM
  • Location: Santa Barbara, CA
  • Address: Upham Hotel Garden meeting room.

LAEF is please to host the Credibility conference at the Upham Hotel Garden room which is located at 1404 De La Vina Street in Santa Barbara.
42 years ago, Professor’s Kydland and Prescott identified the problem of time inconsistency – even well-meaning policymakers, when confronted with forward-looking agents whose choices depend on future policies, can end up delivering bad outcomes.  The key is that the promise of future policies may not be credible; that is, market participants do not believe these future policies will actually be implemented.  Time inconsistency raises several questions: Can policymakers “gain credibility”? Can they lose it? How valuable is credibility?  How are discretion (the ability to react to current situations) and flexibility (how much agents can respond) connected to credibility? The goal of this conference is to develop tools that help us answer these questions. The academic organizer is Eric Young, Professor of Economics at University of Virginia.