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Time Consistency of Optimal Plans: An Elementary Primer

Staff Report 91 | Published March 1, 1984

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Author

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Michael J. Stutzer

Professor of Finance, University of Iowa
Time Consistency of Optimal Plans: An Elementary Primer

Abstract

Time consistent optimal plans are defined within the context of a simple, discrete time optimal control framework. Three possible sources of inconsistency are identified and discussed with reference to the literature.