Title: ENDOGENOUS DIFFERENTIAL INFORMATION IN FINANCIAL MARKETS
Abstract: We develop a two period general equilibrium model with incomplete financial markets and differential information. Making endogenous the traditional informational restriction on consumption, we allow agents to obtain information from physical and financial markets. Thus, the investment in financial promises and the trade of commodities in spot markets appear as natural channels to improve the information that an agent has about the realization of future states of nature.
Publication Year: 2010
Publication Date: 2010-01-01
Language: en
Type: article
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