in American Law and Economics Review
April 2012; p ublished online December 2011 .
Journal Article. Subjects: Law and Economics; Household Behaviour and Family Economics; Intertemporal Choice and Growth; Tax Law; Contract Law. 13623 words.
We study the effect of legal constraints in an environment in which agents face demand shocks they would like to smooth but also have weakness of will: agents' long and short run...