The Study of Long-Term Policy

Short Description

The core challenge of pursuing long-term policy, such as climate policy, securing pensions, or avoiding overstretched public finances is the credible commitment/time inconsistency problem, i.e., the possibility of reneging on earlier promises in the absence of an emergency situation.  In this long-term study of sovereign wealth funds in Alaska and Norway, I compare how the institutional design of intergenerational wealth funds impacts their probability to renege on their promises to provide welfare to future generations.