On the welfare role of redundant assets with heterogenous forecasts
We study a multiperiod model with a nominal bond that matures in one period and identify the set of e¢ cient allocations that can be sustained as Walrasian equilibria with heterogeneous forecasts. We next add a long maturity bond, which under perfect foresight would be a redundant asset, and show th...
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| Main Authors: | , |
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| Format: | text |
| Language: | English |
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Institutional Knowledge at Singapore Management University
2023
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| Online Access: | https://ink.library.smu.edu.sg/soe_research/2716 https://ink.library.smu.edu.sg/context/soe_research/article/3715/viewcontent/cb_wp046__1_.pdf |
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| Institution: | Singapore Management University |
| Language: | English |