When can we do better than autarky?

This paper provides a necessary and sufficient condition for the existence of nonautarkic contract in a risk sharing model with two-sided lack of commitment. Verifying the condition takes just one Gaussian elimination of a matrix.

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Year of publication:	2013
Authors:	Tian, Guoqiang ; Zhang, Yuzhe
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 119.2013, 3, p. 328-331
Publisher:	Elsevier
Subject:	Lack of commitment \| Risk sharing \| Autarky

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Type of publication:	Article
Classification:	D82 - Asymmetric and Private Information ; D86 - Economics of Contract: Theory
Source:	RePEc - Research Papers in Economics

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