Publication
Mar 2009
This paper provides a microfounded account of imperfect information in a dynamic general equilibrium model by describing heterogeneous households that acquire information only through their participation in markets. Incomplete markets, argue the authors, imply incomplete information. The authors argue that overall consumption responds to shocks sluggishly.
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English (PDF, 44 pages, 604 KB) |
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Author | Liam Graham, Stephen Wright |
Series | Kiel Institute Working Papers |
Issue | 1503 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2009 Kiel Institute for the World Economy |