Papers in this group
1 - 20 of
235
-
-
-
-
-
We illustrate the corrosive effect of even small amounts of adverse selection in an asset market and show how it can lead to the total breakdown of trade. The problem is the failure of “market confidence,” defined as approximate common knowledge of…
-
-
-
-
-
-
-
-
-
This paper studies the effects of a fiscal transfer program on the sustainability of an economy. We use a simple overlapping generations model with aggregate uncertainty in which households have rational expectations to show how the size of the…
-
-
-
-
-
-


