Idiosyncratic risk and financial policy
In economies subject to uninsurable idiosyncratic risks, competitive equilibrium allocations are constrained inefficient: reallocations of assets support Pareto superior allocations. This is the case even if the asset market for the allocation of aggregate risks is complete.
Year of publication: |
2011
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Authors: | Carvajal, Andrés ; Polemarchakis, Herakles |
Published in: |
Journal of Economic Theory. - Elsevier, ISSN 0022-0531. - Vol. 146.2011, 4, p. 1569-1597
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Publisher: |
Elsevier |
Subject: | Uninsurable idiosyncratic risks Constrained suboptimality |
Saved in:
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