The expected utility formulation of the problem of a risk-averse agent's allocating a portfolio between a safe and a … exhibiting constant relative risk aversion and the probability distribution of the risky asset as binomial, and take the riskless …

The expected utility formulation of the problem of a risk-averse agent's allocating a portfolio between a safe and a … exhibiting constant relative risk aversion and the probability distribution of the risky asset as binomial, and take the riskless …

explore this possibility, I develop a theory that unifies models of investment choice, informal risk sharing, and formal … inefficiencies. First, borrowers free-ride on their partners, making risky investments without compensating partners for this risk …. Second, the addition of peer-monitoring overcompensates, leading to sharp reductions in risk-taking and profitability. Equity …

We study the optimal taxation of risk-free and excess capital income with heterogeneous rates of return, alongside an … optimal nonlinear earnings tax. Households can hold three assets: one risk-free, one risky but diversifiable, and one a … private investment with idiosyncratic risk whose expected return differs among households. Contrary to expectations, the …

We study the optimal taxation of risk-free and excess capital income with heterogeneous rates of return, alongside an … optimal nonlinear earnings tax. Households can hold three assets: one risk-free, one risky but diversifiable, and one a … private investment with idiosyncratic risk whose expected return differs among households. Contrary to expectations, the …