When can we do better than autarky?
AbstractThis paper provides a necessary and sufficient condition for the existence of nonautarkic contract in a risk sharing model with two-sided lack of commitment. Verifying the condition takes just one Guassian elimination of a matrix.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 44338.
Date of creation: Jan 2013
Date of revision: Feb 2013
Lack of commitment; Risk sharing; Autarky;
Other versions of this item:
- D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-02-16 (All new papers)
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