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Constrained inefficiency and optimal taxation with uninsurable risks

Gottardi, Piero; Kajii, Atsushi; Nakajima, Tomoyuki - 2014

welfare effects of these taxes into insurance and distribution effects. This method allows us to determine how the sign of the …

Persistent link: https://www.econbiz.de/10011310192

Are Incomplete Markets Able to Achieve Minimal Efficiency?

Dierker, Egbert; Dierker, Hildegard; Grodal, Birgit - Økonomisk Institut, Københavns Universitet - 2002

We consider economies with incomplete markets, one good per state, two periods, t = 0; 1, private ownership of initial endowments, a single firm, and no assets other than shares in this firm. In Dierker, Dierker, Grodal (2002), we give an example of such an economy in which all market equilibria...

Persistent link: https://www.econbiz.de/10005543486

Constrained Inefficiency and Optimal Taxation with Uninsurable Risks

Gottardi, Piero; Kajii, Atsushi; Nakajima, Tomoyuki - Faculty of Economics, University of Tokyo - 2015

welfare effects of these taxes into insurance and distribution effects. This allows us to determine how the sign of the …

Persistent link: https://www.econbiz.de/10011150289

Efficiency of competitive equilibria with hidden action : the role of separable preferences

PANACCIONE, Luca - Center for Operations Research and Econometrics (CORE), … - 2004

In the present paper we study the efficiency properties of competitive equilibria in economies with hidden action and multiple goods. We borrow the description of the economy from Lisboa [3] and we apply a method of proof close in spirit to the one used in the literature on incomplete financial...

Persistent link: https://www.econbiz.de/10005008655

Small Income Effects Destroy the Constrained Efficiency of All Equilibria in Finance Economies with Production.

Dierker, Egbert; Dierker, Hildegard; Grodal, Birgit - Økonomisk Institut, Københavns Universitet - 2001

We consider economies with incomplete markets, one good per state, private ownership of initial endowments, a single firm, and no assets other than shares in this firm. In this simple framework, arbitrarily small income effects can render every market equilibrium resulting from some production...

Persistent link: https://www.econbiz.de/10005749593

Constrained Inefficiency and Optimal Taxation with Uninsurable Risks

Gottardi, Piero; Kajii, Atsushi; Nakajima, Tomoyuki - Institute of Economic Research, Kyoto University - 2014

welfare effects of these taxes into insurance and distribution effects. This allows us to determine how the sign of the …

Persistent link: https://www.econbiz.de/10008493360

When Borch’s Theorem does not apply: some key implications of market incompleteness, with policy relevance today

DREZE, Jacques - Center for Operations Research and Econometrics (CORE), … - 2013

Markets are incomplete when the assets available to the agents do not span the space of future contingencies. Efficiency is then assessed by the weak criterion of "constrained efficiency" (efficiency relative to the set of allocations compatible with the asset structure). That criterion requires...

Persistent link: https://www.econbiz.de/10010662664

Constrained inefficiency and optimal taxation with uninsurable risks

Gottardi, Piero; Kajii, Atsushi; Nakajima, Tomoyuki - 2014

welfare effects of these taxes into insurance and distribution effects. This method allows us to determine how the sign of the …

Persistent link: https://www.econbiz.de/10010433962

Hidden insurance in a moral hazard economy

Bertola, Giuseppe; Koeniger, Winfried - 2013

with effort-determined probability. We show that if insurance against a negative shock is sufficiently incomplete, then … standard functional form restrictions ensure that individual objective functions are optimized by an effort and insurance … combination that is unique and satisfies first- and second-order conditions. Modeling insurance incompleteness in terms of costly …

Persistent link: https://www.econbiz.de/10010225898