Idiosyncratic risk and financial policy

A-Tier
Journal: Journal of Economic Theory
Year: 2011
Volume: 146
Issue: 4
Pages: 1569-1597

Authors (2)

Carvajal, Andrés (University of California-Davis) Polemarchakis, Herakles (not in RePEc)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

In economies subject to uninsurable idiosyncratic risks, competitive equilibrium allocations are constrained inefficient: reallocations of assets support Pareto superior allocations. This is the case even if the asset market for the allocation of aggregate risks is complete.

Technical Details

RePEc Handle
repec:eee:jetheo:v:146:y:2011:i:4:p:1569-1597
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25