Welfare effects of financial innovation in incomplete markets economies with several consumption goods
Article Abstract:
A study showed that arbitrary welfare perturbation may be achieved by introducing the proper asset into an incomplete markets economy with non-singular consumption goods. A general equilibrium with incomplete markets economy model was developed to show that the effects of financial innovation may influence other markets that appear to have no links with the new asset. The diverse behaviors that likely result from a shift away from a single-commodity paradigm is emphasized. Increased oversight and sophistication is necessary to derive both theoretical and practical solutions.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1995
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Acyclicity and decisiveness structures
Article Abstract:
A study made by J.A. Ferejohn and P.C. Fishburn regarding conditions for the acyclicity of binary decision rules in social welfare is examined to determine its relationship with simpler acyclicity conditions. Results show that the Ferejohn and Fishburn condition can imply conditions for acyclicity under appropriate assumptions. On the other hand, acyclicity conditions imply the Ferejohn and Fishburn condition without any assumptions.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1996
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Blackwell's ordering and public information
Article Abstract:
Relationship between public information and welfare is examined using set-valued solution concept of allocations. A comparative study of Blackwell's criterion for ordering information structures with public information is presented which provides an equivalent characterization of his ordering.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2004
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