Information, stabilité des prix et bien-être
Bruno Jullien ()
Annals of Economics and Statistics, 1993, issue 32, 1-15
In the context of a stationary economy, where markets for long-lived real assets open periodically, we analyze the welfare effect of the information structure. At each period, agents receive a signal related to the future dividends of assets. Whenever the quality of the information increases, the price volatility increases. Assets dividends are more predictable but at the expense of a higher capital risk, since future prices are less predictable. The global risk on assets returns may then increase, resulting in a lower welfare level. The paper exhibits an example where, due to this effect, agents prefer a structure where nobody receives any information to any other stationary information structure.
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Working Paper: Information, stabilité des prix et bien-être (1991)
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:1993:i:32:p:1-15
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