Items related to Evaluating the Effects of Incomplete Markets on Risk...
Evaluating the Effects of Incomplete Markets on Risk Sharing and Asset Pricing (Classic Reprint) - Softcover
Excerpt from Evaluating the Effects of Incomplete Markets on Risk Sharing and Asset Pricing
Incomplete markets in the form of an inability to borrow against risky future income has been proposed as an explanation for the poor predictive power of the standard consumption-based asset pricing model.1 With complete markets, individuals fully insure against idiosyncratic income shocks, and individual consumption is proportional to aggregate consumption.2 With limited insurance markets, however, individual consumption variability may exceed that of the aggregate, and the implied asset prices may differ significantly from those predicted by a representative consumer model. In this paper we study an economy in which agents cannot write contracts contingent on future labor income realizations. They face aggregate uncertainty in the form of dividend and systematic labor income risk, and also idiosyncratic labor income risk. Idiosyncratic income shocks can be buffered by trading in financial securities, but the extent of trade is limited by borrowing constraints, short sales constraints and transactions costs.
About the Publisher
Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com
This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
Incomplete markets in the form of an inability to borrow against risky future income has been proposed as an explanation for the poor predictive power of the standard consumption-based asset pricing model.1 With complete markets, individuals fully insure against idiosyncratic income shocks, and individual consumption is proportional to aggregate consumption.2 With limited insurance markets, however, individual consumption variability may exceed that of the aggregate, and the implied asset prices may differ significantly from those predicted by a representative consumer model. In this paper we study an economy in which agents cannot write contracts contingent on future labor income realizations. They face aggregate uncertainty in the form of dividend and systematic labor income risk, and also idiosyncratic labor income risk. Idiosyncratic income shocks can be buffered by trading in financial securities, but the extent of trade is limited by borrowing constraints, short sales constraints and transactions costs.
About the Publisher
Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com
This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
"synopsis" may belong to another edition of this title.
- PublisherForgotten Books
- Publication date2024
- ISBN 10 1334448485
- ISBN 13 9781334448485
- BindingPaperback
- Number of pages67
Buy New
Learn more about this copy
US$ 16.39
Shipping:
FREE
Within U.S.A.
Top Search Results from the AbeBooks Marketplace
Stock Image
Evaluating the Effects of Incomplete Markets on Risk Sharing and Asset Pricing Classic Reprint
Seller:
Rating
Book Description PAP. Condition: New. New Book. Shipped from UK. Established seller since 2000. Seller Inventory # LX-9781334448485
Buy New
US$ 16.39
Convert currency
Evaluating the Effects of Incomplete Markets on Risk Sharing and Asset Pricing
Published by
Forgotten Books
(2018)
ISBN 10: 1334448485
ISBN 13: 9781334448485
New
Paperback
Quantity: > 20
Seller:
Rating
Book Description Paperback. Condition: New. Print on Demand. Excerpt from Evaluating the Effects of Incomplete Markets on Risk Sharing and Asset Pricing. About the Publisher, Forgotten Books publishes hundreds of thousands of rare and classic books. This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works. This text has been digitally restored from a historical edition. Some errors may persist, however we consider it worth publishing due to the work's historical value. The digital edition of all books may be viewed on our website before purchase. print-on-demand item. Seller Inventory # 9781334448485_0
Buy New
US$ 15.09
Convert currency
Stock Image
Evaluating the Effects of Incomplete Markets on Risk Sharing and Asset Pricing Classic Reprint
Seller:
Rating
Book Description PAP. Condition: New. New Book. Shipped from UK. Established seller since 2000. Seller Inventory # LX-9781334448485
Buy New
US$ 13.96
Convert currency