EconPapers    
Economics at your fingertips  
 

Production and Financial Policies under Asymmetric Information

Jacques Dreze, Enrico Minelli and Mario Tirelli ()

Working Papers from University of Brescia, Department of Economics

Abstract: We propose an extension of the standard general equilibrium model with production and incomplete markets to situationsin which (i) private investors have limited information on the returns of specific assets, (ii) managers of firms have limited information on the preferences of individual shareholders. The extension is obtained by the assumption that firms are not traded directly but grouped into ‘sectorial’ funds. In our model the financial policy of the firm is not irrelevant. We establish the existence of equilibria and discuss the nature of the inefficiencies introduced by the presence of asymmetric information. We also illustrate the properties of the model in three simple examples.

New Economics Papers: this item is included in nep-cfn and nep-fmk
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.unibs.it/on-line/dse/Home/Inevidenza/Pa ... o/documento5253.html
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.unibs.it/on-line/dse/Home/Inevidenza/PaperdelDipartimento/documento5253.html [302 Found]--> https://www.unibs.it/on-line/dse/Home/Inevidenza/PaperdelDipartimento/documento5253.html)

Related works:
Journal Article: Production and financial policies under asymmetric information (2008) Downloads
Working Paper: Production and financial policies under asymmetric information (2004) 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:ubs:wpaper:ubs0608

Access Statistics for this paper

More papers in Working Papers from University of Brescia, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Matteo Galizzi ().

 
Page updated 2019-07-22
Handle: RePEc:ubs:wpaper:ubs0608