Private Information, Growth and Asset Prices with Stochastic Disturbances

Marcelo Bianconi

No 301, Discussion Papers Series, Department of Economics, Tufts University from Department of Economics, Tufts University

Abstract: We introduce both idiosyncratic and aggregate shocks in an endogenous growth model with endogenous partial insurance to the idiosyncratic shock. Aggregate uncertainty introduces an additional channel that can play an important role in determining the effects of private information on expected growth and asset prices. We show the impact of aggregate and idiosyncratic shocks on expected growth and on the variability of individual quantities and asset prices.

Keywords: optimal contract; endogenous growth; endogenous partial insurance; asset prices (search for similar items in EconPapers)
JEL-codes: D1 D2 (search for similar items in EconPapers)
Date: 2003
New Economics Papers: this item is included in nep-cfn, nep-dev and nep-rmg
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Citations: View citations in EconPapers (2)

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Journal Article: Private information, growth, and asset prices with stochastic disturbances (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:tuf:tuftec:0301

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