When can we do better than autarky?
This 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 Gaussian elimination of a matrix.
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- Narayana Kocherlakota, 2010. "Implications of Efficient Risk Sharing Without Commitment," Levine's Working Paper Archive 2053, David K. Levine.
- Chattopadhyay, Subir, 2001. "The unit root property and optimality: a simple proof," Journal of Mathematical Economics, Elsevier, vol. 36(2), pages 151-159, November.
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