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This paper examines the optimal allocation of risk in an overlapping-generations economy. It compares the allocation of risk the economy reaches naturally to the allocation that would be reached if generations behind a Rawlsian 'veil of ignorance' could share risk with one another through...
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This paper explores the introduction of collective risk-sharing elements in defined contribution pension contracts. We consider status-contingent, age-contingent and asset contingent risk-sharing arrangements. All arrangements raise aggregate welfare, as measured by equivalent variations. While...
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informational interdependence between financial markets and the real economy, linking uncertainty to information production and … joint information productions determine both the allocative efficiency in the real sector and the market efficiency in the … financial sector. The mutual learning creates a strategic complementarity between information production in the financial sector …
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