The costs of business cycles with market incompleteness I

Cited 0 time in webofscience Cited 0 time in scopus
  • Hit : 150
  • Download : 0
This paper re-examines the welfare costs of busness cylces with market incompleteness. We show that the consideration of limited asset market participation in a real business cycle model makes it possible for welfare costs to increase substantially in response to business cycle risks. A high Sharpe ratio, i.e. the risk-return trade-off in financial markets is key to generating welfare estimates two orders of magnitude larger than Lucas (1987)'s ones.
Publisher
Korean Econometric Society
Issue Date
2014-06
Language
Korean
Article Type
Article
Citation

Journal of Economic Theory and Econometrics, v.25, no.2, pp.40 - 59

ISSN
1229-2893
URI
http://hdl.handle.net/10203/298689
Appears in Collection
STP-Journal Papers(저널논문)
Files in This Item
There are no files associated with this item.

qr_code

  • mendeley

    citeulike


rss_1.0 rss_2.0 atom_1.0