Growth and risk-sharing with private information
Aubhik Khan () and
No 99-12, Working Papers from Federal Reserve Bank of Philadelphia
The author examines the impact of incomplete risk-sharing on growth and welfare. The source of market incompleteness in the economy is private information: a household's idiosyncratic productivity shock is not observable by others. Risk-sharing between households occurs through long-term contracts with intermediaries. The author finds that incomplete risk-sharing tends to reduce the rate of growth relative to the complete risk-sharing benchmark. Numerical examples indicate that the welfare cost and the growth effect of private information are small.
Keywords: Economic development; Risk (search for similar items in EconPapers)
Date: 1999, Revised 1999
New Economics Papers: this item is included in nep-dev, nep-dge, nep-ias and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://www.philadelphiafed.org/research-and-data/p ... ers/1999/wp99-12.pdf (application/pdf)
Journal Article: Growth and risk-sharing with private information (2001)
Working Paper: Growth and Risk-Sharing with Private Information (1998)
Working Paper: Growth and Risk-Sharing with Private Information (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedpwp:99-12
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Papers from Federal Reserve Bank of Philadelphia Contact information at EDIRC.
Bibliographic data for series maintained by ().