Business cycle fluctuations in Mirrlees economies: The case of i.i.d. shocks

• 成果类型: Article
• 署名作者: Veracierto, Marcelo
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Chicago
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2021.105278
• 发表日期: 2021
• 关键词: Risk sharing; business cycles; private information; social insurance; optimal contracts; heterogeneous agents

摘要

I consider a real business cycle model in which agents have private information about the i.i.d. realizations of their value of leisure. For the case of logarithmic preferences I provide an analytical characterization of the solution to the associated mechanism design problem. Moreover, I show a striking irrelevance result: that the stationary behavior of all aggregate variables are exactly the same in the private information economy as in the full information case. Numerical simulations indicate that the irrelevance result approximately holds for more general preferences. (c) 2021 Federal Reserve Bank of Chicago. Published by Elsevier Inc. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).