Počet záznamů: 1
Efficient allocations in dynamic private information economies with persistent shocks: a first-order approach
- 1.0423397 - NHU-C 2014 RIV GB eng J - Článek v odborném periodiku
Kapička, Marek
Efficient allocations in dynamic private information economies with persistent shocks: a first-order approach.
Review of Economic Studies. Roč. 80, č. 3 (2013), s. 1027-1054. ISSN 0034-6527. E-ISSN 1467-937X
Institucionální podpora: PRVOUK-P23
Klíčová slova: first-order approach * persistent shocks * private information
Kód oboru RIV: AH - Ekonomie
Impakt faktor: 3.235, rok: 2013
This article studies efficient allocations in a dynamic private information economy with a continuum of idiosyncratic shocks that are persistent. I develop a first-order approach for this environment and show that the problem has a simple recursive structure that relies on only a small number of state variables, making the problem tractable. I find sufficient conditions that guarantee that the first-order approach is valid. To illustrate the first-order approach I numerically compute the efficient allocations in a Mirrleesean economy with productivity shocks that follow a random walk and verify the validity of the first-order approach. I show that persistent shocks create a new trade-offwhere the social planner decreases the informational rent of the agent today at the cost of providing higher insurance in the future.
Trvalý link: http://hdl.handle.net/11104/0229486
Počet záznamů: 1