Private Information, Growth and Asset Prices with Stochastic Disturbances

We introduce both idiosyncratic and aggregate shocks in an endogenous growth model with endogenous partial insurance to the idiosyncratic shock. Aggregate uncertainty introduces an additional channel that can play an important role in determining the effects of private information on expected growth and asset prices. We show the impact of aggregate and idiosyncratic shocks on expected growth and on the variability of individual quantities and asset prices.

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Year of publication:	2003
Authors:	Bianconi, Marcelo
Institutions:	Department of Economics, Tufts University
Subject:	optimal contract \| endogenous growth \| endogenous partial insurance \| asset prices

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Extent:	application/pdf
Series:	Discussion Papers Series, Department of Economics, Tufts University.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 0301
Classification:	D1 - Household Behavior and Family Economics ; D2 - Production and Organizations
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005112770