Money with idiosyncratic uninsurable returns to capital

• 成果类型: Article
• 署名作者: Faig, M
• 署名单位: University of Toronto
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1006/jeth.2000.2672
• 发表日期: 2000
• 页码: 218-240
• 关键词: income fluctuations; uninsurable risk; demand for money; optimum quantity of money

摘要

This paper extends thr income fluctuations problem to an economy with endogenous growth. Individuals. instead of owning a stream of endowments, accumulate capital with an investment irreversibility constraint and lace uninsurable idiosyncratic risks to the return to capital. Money provides both a risk diversification and a liquidity role. Balanced growth paths exist despite the increasing dispersion of the wealth distribution. The return to money cannot be equated to the social return to capital unless the government owns the entire capital stock with idiosyncratic risk and it it capable of operating this stock as efficiently as private agents can. Journal of Economic Literature Classification Numbers: E31, E42, E58. (C) 2000 Academic Press.