Optimal Regulation in the Presence of Reputation Concerns

We thank Fernando Alvarez, Hal Cole, Johannes Hörner, Larry Samuelson, Jean Tirole, Ivan Werning, and seminar participants at Berkeley, Carnegie Mellon, Chicago, Columbia, CREI, Duke, EIEF, EUI, Minneapolis Fed, Paris School of Economics, University of Pennsylvania, Stockholm IIES, University of Toronto, Toulouse School of Economics, Sauder School of Business-UBC, St. Louis Fed, Stanford GSB, Wharton School, Yale University, the 2009 SED Meetings at Istanbul, and the 2010 Minnesota Macro Workshop for their comments. We also thank Joan Gieseke for excellent editorial assistance and the National Science Foundation and the Federal Reserve Bank of Minneapolis for support of our research. The research leading to these results has also received funding from the European Research Council under the European Community's Seventh Framework Programme FP7/2007-2013 grant agreement N263790. The usual waiver of liability applies. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis, the Federal Reserve System, or the National Bureau of Economic Research.