Henriksen, Espen; Spear, Stephen - In: Journal of Economic Theory 147 (2012) 2, pp. 426-449
In this paper, we show that within the set of stochastic three-period-lived OLG economies with productive assets (such as land), markets are necessarily sequentially incomplete, and agents in the model do not share risk optimally. We start by characterizing perfect risk-sharing and find that it...