Financial Innovation and Risk Sharing - Softcover

Allen, Franklin; Gale, Douglas

Softcover

ISBN 10: 0262514656 ISBN 13: 9780262514651

Publisher: MIT Press, 2003

Synopsis

Franklin Allen and Douglas Gale have contributed substantially to the study of financial innovation, developing economic models to address the question of whether the market provides institutions and opportunities for individuals to share risks efficiently. In this book they assemble some of their key papers along with a five-chapter overview that not only synthesizes their work but provides a historical and institutional review and a discussion of alternative approaches as well. The lengthy overview surveys the authors' approach to financial innovation, principally their development of a basic theory of risk sharing in an economy with incomplete markets. The first two chapters summarize the history of innovation and illustrate the types of innovation, innovators, and motives for innovation. Chapters three and four look at industrial organization approaches to innovation and outline the authors' theory. The fifth chapter discusses other approaches and an agenda for future research.

About this title

About the Author

Franklin Allen is the Nippon Life Professor of Finance and Economics at the Wharton School, University of Pennsylvania.

Edition details

• Publisher: MIT Press
• Publication date: 2003
• Language: English
• ISBN 10: 0262514656
• ISBN 13: 9780262514651
• Binding: Paperback
• Number of pages: 390