MIT shocks imply market incompleteness

C-Tier
Journal: Economics Letters
Year: 2021
Volume: 198
Issue: C

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The allocation after an unanticipated event (often called an “MIT shock”) is different from the allocation of a corresponding complete-market model that explicitly considers the possibility of the shock, even when the probability of the event approaches zero.

Technical Details

RePEc Handle
repec:eee:ecolet:v:198:y:2021:i:c:s0165176520304262
Journal Field
General
Author Count
1
Added to Database
2026-01-26