Macroeconomics - ECON 510 a , Fall 2010 , Yale University Limited Commitment
نویسنده
چکیده
So far, we have focused on a complete market benchmark and studied its success and failure to match the data in several dimensions (business cycles, asset pricing and long run growth) and to understand optimal taxation. A key assumption in that context was perfect enforcement of contracts (in particular, perfect enforcement of state contingent claims). A key result in that context is perfect smoothing of consumption: agents can trade contingent claims that are perfectly enforceable to maintain their consumption constant over time (perfect insurance against income shocks).
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