Growth and risk-sharing with private information

• 成果类型: Article
• 署名作者: Khan, A; Ravikumar, B
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Philadelphia; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(01)00053-8
• 发表日期: 2001
• 页码: 499-521
• 关键词: growth; long-term contracts; risk-sharing

摘要

We examine the impact of incomplete risk-sharing on growth and welfare. The source of market incompleteness in our economy is private information: a household's idiosyncratic productivity shock is not observable by others. Risk-sharing between households occurs through long-term contracts with intermediaries. We find that incomplete risk-sharing tends to reduce the rate of growth relative to the complete risk-sharing benchmark. Numerical examples indicate that the welfare cost and the growth effect of private information are small. (C) 2001 Elsevier Science B.V. All rights reserved.