1 option
A Simple Model of Useless Speculation / Murray C. Kemp, Hans-Werner Sinn.
- Format:
- Book
- Author/Creator:
- Kemp, Murray C.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w3513.
- NBER working paper series no. w3513
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 1990.
- Summary:
- The paper presents a general equilibrium model of a pure exchange economy with stochastic endowment in which speculation is profitable and stabilizes prices, but is useless from a welfare point of view. Reconciling the Siegel paradox with the theory of incomplete markets we show that banning speculation by closing the forward exchange market may increase social welfare.
- Notes:
- Print version record
- November 1990.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.