Search Results - subject:"Limited commitment"

Risk-Sharing Networks among Households in Rural Ethiopia

Ayalew, Daniel - EconWPA - 2004

We apply the set up of limited commitment model to empirically test the role of informal risk-sharing networks using …

Persistent link: https://www.econbiz.de/10005062432

Corporate Governance Institutions, Investment, and the Macroeconomy

Falato, Antonio - Society for Economic Dynamics - SED - 2004

This paper evaluates quantitatively the macroeconomic implications of corporate governance institutions within a model where the size and distribution of firms and the structure of financial markets are jointly determined. If firms adapt their financing modes to economic conditions, aggregate...

Persistent link: https://www.econbiz.de/10005069570

Competitive Risk Sharing Contracts with One-Sided Commitment

Krueger, Dirk; Uhlig, Harald - C.E.P.R. Discussion Papers - 2004

This Paper analyses dynamic equilibrium risk sharing contracts between profit-maximizing intermediaries and a large pool of ex-ante identical agents that face idiosyncratic income uncertainty that makes them heterogeneous ex-post. In any given period, after having observed their income, the...

Persistent link: https://www.econbiz.de/10005498096

Monetary Union with Voluntary Participation

Fuchs, William; Lippi, Francesco - C.E.P.R. Discussion Papers - 2003

A monetary union is modelled as a technology that makes surprise devaluations impossible but requires voluntarily participating countries to follow the same monetary policy. It is shown that for low discount factors and sufficiently correlated shocks welfare in the union is higher than that...

Persistent link: https://www.econbiz.de/10005662125

Unemployment Insurance under Moral Hazard and Limited Commitment: Public vs Private Provision

Thomas, Jonathan P; Worrall, Tim - EconWPA - 2002

This paper analyses a model of private unemployment insurance under limited commitment and a model of public …

Persistent link: https://www.econbiz.de/10005556941

The Market Price of Aggregate Risk and the Wealth Distribution

Lustig, Hanno - EconWPA - 2001

Bankruptcy brings the asset pricing implications of Lucas's (1978) endowment economy in line with the data. I introduce bankruptcy into a complete markets model with a continuum of ex ante identical agents who have CRRA utility. Shares in a Lucas tree serve as collateral. The model yields a...

Persistent link: https://www.econbiz.de/10005413071

Regulation in a political economy: explaining limited commitment and the ratchet effect

Strausz, Roland - In: Economics of Governance 1 (2000) 3, pp. 181-197

Persistent link: https://www.econbiz.de/10005759958

Informal Insurance Arrangements in Village Economies

Ligon, Ethan; Thomas, Jonathan P; Worrall, Tim - Centre for Research into Industry, Enterprise, Finance … - 1997

against three alternative models: autarky, full insurance, and a static model of limited commitment due to Coate and Ravaillon …This paper studies insurance arrangements in village economies when there is complete information but limited … commitment. Commitment is limited because only limited penalties can be imposed on households which renege on their promises. Any …

Persistent link: https://www.econbiz.de/10005697001

Imperfect Commitment and the Revelation Principle

Bester, Helmut; Strausz, Roland

and limited commitment. …

Persistent link: https://www.econbiz.de/10005745372

Regulation in a Political Economy: An explanation of limited commitment of governments in the context of the ratchet effect

Strausz, Roland

This paper offers an explanation why governments have limited commitment and are susceptible to the ratchet effect. It …

Persistent link: https://www.econbiz.de/10005745374