Citanna, Alessandro; Schmedders, Karl - In: Economic Theory 26 (2005) 3, pp. 559-587
degree of incompleteness and of changes in the financial structure on asset price volatility. In what are essentially no … aggregate risk economies, asset price volatility is a sunspot-like phenomenon. If markets are completed by financial innovation …, asset price volatility reduction is generic. With aggregate risk, changes in the financial structure affect asset price …