| The Laureates |
| Finn
E. Kydland, Tepper School of Business, Carnegie Mellon |
| Edward
C. Prescott, Federal Reserve Bank of Minneapolis |
| |
| |
| Original Papers |
| Kydland, F. and E. Prescott
(1977), "Rules rather than discretion: The inconsistency of optimal
plans", Journal of Political Economy 85, pp. 473-490. |
| |
| Kydland, F. and E. Prescott
(1982), "Time to build and aggregate fluctuations", Econometrica
50, pp. 1345-1371. |
| |
| |
| Other Articles and Books |
| The time-consistency problem
is by now a well established element of macroeconomic analysis. Good
expositions can be found in any intermediate textbook, see e.g. O.
Blanchard, Macroeconomics, Prentice-Hall, 2000, ch. 25. |
| |
| A good presentation of the
Laureates contribution to business cycle theory is given in C. Plosser,
"Understanding Real Business Cycles", Journal of Economic Perspectives
1989, no. 3, pp. 51-77. |
| |
| For a discussion emphasizing
methodological aspects, see F. E. Kydland and E. C. Prescott, "The
Computational Experiment: An Econometric Tool", Journal of Economic
Perspectives 1996, no. 1, pp. 69-85. |
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