We develop an OLG economy with accumulation in human capital. Heterogenity among individuals in each generation results mainly from the (random) innate ability assigned to each individual. We analyze how better information, which allows better 'screening' during the 'youth' period when the...

The paper generalizes Blackwell's theorem, according to which the welfare effects of an improvement in information are positive to certain class equilibrium production economies. The consumer preferences in this class of economies exhibit either constant relative risk of constant risk aversion...

The paper constructs a theoretical framework in which the value of information in general equilibrium can be linked to the efficiency of the risk sharing mechanism. We demonstrate that in economies with production, information may have negative value even though no risk sharing markets exist. As...