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dc.contributor.authorHOELLE, Matthew
dc.date.accessioned2014-04-07T13:36:47Z
dc.date.available2014-04-07T13:36:47Z
dc.date.issued2012
dc.identifier.citationEconomic Theory, 2012, Vol. 50, No. 3, pp. 603-634.en
dc.identifier.issn1432-0479
dc.identifier.issn0938-2259
dc.identifier.urihttps://hdl.handle.net/1814/30918
dc.descriptionFirst published online : August 2012
dc.description.abstractIn this paper, I examine a two-period general equilibrium model in which transaction costs are incurred whenever financial contracts are traded. These transaction costs are real and convex. The presence of these transaction costs results in a Pareto inefficient equilibrium allocation. Attempting to fix this problem, the planner will intervene by scaling the transaction costs either up or down. The intervention must satisfy fiscal balance meaning that the summed value of transaction costs will remain constant. I prove that over a generic subset of household utility functions and endowments and subject to an upper bound on the number of household types, there exists an open set of planner interventions that lead to a Pareto superior allocation.en
dc.language.isoenen
dc.relation.ispartofEconomic Theoryen
dc.titleTransaction costs and planner interventionen
dc.typeArticleen
dc.identifier.doi10.1007/s00199-010-0583-5
dc.identifier.volume50en
dc.identifier.startpage603en
dc.identifier.endpage634en
eui.subscribe.skiptrue
dc.identifier.issue3en


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