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 Guassian elimination of a matrix.
|Date of creation:||Jan 2013|
|Date of revision:||Feb 2013|
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Web page: https://mpra.ub.uni-muenchen.de
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