Colabora: Universitat Pompeu Fabra. Departament d'Economia i Empresa
Autor/es:
Giorgio Di Giorgio;
Resumen :
This paper studies the efficiency of equilibria in a productive OLG economy where the process of financial intermediation is characterized by costly state verification. Both competitive equilibria and Constrained Pareto Optimal allocations are characterized. It is shown that market outcomes can be socially inefficient, even when a weaker notion than Pareto optimality is considered.
