Ábrahám, Árpád; Pavoni, Nicola - In: Journal of the European Economic Association 3 (2005) 2-3, pp. 370-381
In this paper, we describe the properties of the optimal allocation of consumption in a world with moral hazard and hidden borrowing and lending. We discuss how and under what conditions the efficient allocation can be distinguished from that of the permanent income (self-insurance) model. We...
