EconPapers    
Economics at your fingertips  
 

Information, stabilité des prix et bien-être

Bruno Jullien ()

Annals of Economics and Statistics, 1993, issue 32, 1-15

Abstract: 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.

Date: 1993
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.jstor.org/stable/20075923 (text/html)

Related works:
Working Paper: Information, stabilité des prix et bien-être (1991) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:1993:i:32:p:1-15

Access Statistics for this article

Annals of Economics and Statistics is currently edited by Laurent Linnemer

More articles in Annals of Economics and Statistics from GENES Contact information at EDIRC.
Bibliographic data for series maintained by Laurent Linnemer ().

 
Page updated 2019-11-06
Handle: RePEc:adr:anecst:y:1993:i:32:p:1-15