Idiosyncratic risk and financial policy

• 成果类型: Article
• 署名作者: Carvajal, Andres; F'olemarchakis, Herakles
• 署名单位: University of Warwick
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2011.03.012
• 发表日期: 2011
• 页码: 1569-1597
• 关键词: Uninsurable idiosyncratic risks; Constrained suboptimality

摘要

In economies subject to uninsurable idiosyncratic risks, competitive equilibrium allocations are constrained inefficient: reallocations of assets support Pareto superior allocations. This is the case even if the asset market for the allocation of aggregate risks is complete. (C) 2011 Elsevier Inc. All rights reserved.