Arbeitspapier
Pareto improving financial innovation in incomplete markets
Financial innovation in an existing asset generically supports a Pareto improvement, targeting the income effect. This result, as several on taxation, owes to one unifying notion: that an intervention generically supports Pareto improvements if the implied price adjustment is sufficiently sensitive to the economy’s risk aversion. Elul (1995) and Cass and Citanna (1998) introduce financial innovation in a new unwanted asset, targeting the substitution effect. Our result requires an initial position of greater asset completeness, but not the addition of a new asset market. The existence argument relies on recent developments in demand theory with incomplete markets.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 2006-10
- Classification
-
Wirtschaft
- Subject
-
Finanzinnovation
Unvollkommener Markt
Pareto-Optimum
Wohlfahrtsanalyse
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Turner, Sergio
- Event
-
Veröffentlichung
- (who)
-
Brown University, Department of Economics
- (where)
-
Providence, RI
- (when)
-
2005
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Turner, Sergio
- Brown University, Department of Economics
Time of origin
- 2005
Other Objects (12)
Pareto improving taxation in incomplete markets
Pareto improving social security reform when financial markets are incomplete!?
Pareto improving social security reform when financial markets are incomplete!?
Pareto improving monetary policy in incomplete markets
Full and constrained Pareto optimality with incomplete financial markets
Pareto improving price regulation when the asset market is incomplete
Initial shares can cause Pareto improvements when markets are incomplete
Incomplete financial markets: Volatility and transaction costs
A re-examination of constrained Pareto inefficiency in economies with incomplete markets
Pareto-Improving Structural Reforms
Pareto - Improving Unemployment Policies
Pareto-Improving Structural Reforms
Pareto improving taxation in incomplete markets
Pareto improving social security reform when financial markets are incomplete!?
Pareto improving social security reform when financial markets are incomplete!?
Pareto improving monetary policy in incomplete markets
Full and constrained Pareto optimality with incomplete financial markets
Pareto improving price regulation when the asset market is incomplete
Initial shares can cause Pareto improvements when markets are incomplete
Incomplete financial markets: Volatility and transaction costs
A re-examination of constrained Pareto inefficiency in economies with incomplete markets
Pareto-Improving Structural Reforms
Pareto - Improving Unemployment Policies
Pareto-Improving Structural Reforms
Pareto improving taxation in incomplete markets
Pareto improving social security reform when financial markets are incomplete!?
Pareto improving social security reform when financial markets are incomplete!?
Pareto improving monetary policy in incomplete markets
Full and constrained Pareto optimality with incomplete financial markets
Pareto improving price regulation when the asset market is incomplete
Initial shares can cause Pareto improvements when markets are incomplete
Incomplete financial markets: Volatility and transaction costs
A re-examination of constrained Pareto inefficiency in economies with incomplete markets
Pareto-Improving Structural Reforms
Pareto - Improving Unemployment Policies