Cooperation among firms is governed by contracts. An interesting phenomenon is that some contracts are comprehensive while some are limited. This study tries to explain different levels of incompleteness of contracts that firms choose to govern their cooperation with. We find that a limited...

This paper reexamines a recent contribution to the theory of wealth accumulation under income uncertainty by Ricardo Caballero in this Review. First we develop a more general model which generates a richer variety of results and this enables us to place the role of income uncertainty into a more...