Welfare Implications of Mitigating Investment Uncertainty

Takayuki Ogawa () and Jun Sakamoto ()
Additional contact information
Takayuki Ogawa: Faculty of Economics, Osaka University of Economics
Jun Sakamoto: Graduate School of Economics, Osaka University

No 18-33, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper explores the welfare implications of mitigating investment uncertainty in the context of Easley and O fHara (2009) [Ambiguity and Nonparticipation: The Role of Regulation. Review of Financial Studies 22(5), 1817-1843]. While one may expect welfare gains to be had by encouraging participation in financial markets by ambiguity-averse investors, we formally show that it hurts other investors and is not Pareto-improving without appropriate income transfers.

Keywords: Ambiguity; Heterogenous agents; Uncertainty; Welfare effects (search for similar items in EconPapers)
JEL-codes: D81 G11 G18 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2018-12
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:osk:wpaper:1833

Access Statistics for this paper

More papers in Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by The Economic Society of Osaka University ().