Constrained efficiency versus unanimity in incomplete markets
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DOI: 10.1007/s00199-016-0968-1
Abstract: In production economies with incomplete markets, shareholders disagree about optimal production plans, and there is no natural objective of the firm. From a normative perspective, the firm should choose plans that lead to a constrained… read more here.
Keywords: versus unanimity; constrained efficiency; incomplete markets; production ... See more keywords
Constrained Efficiency in a Human Capital Model
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DOI: 10.1257/mac.20160405
Abstract: This paper investigates whether capital and human capital are over-accumulated in an incomplete market economy. As in Davila et al. (2012), whether capital is over-accumulated depends on how the pecuniary externalities affect insurance and redistribution.… read more here.
Keywords: constrained efficiency; capital; capital human; efficiency human ... See more keywords