El Departamento de Economía de la Universidad de Chile tiene el agrado de invitar a usted a un nuevo Seminario Académico:

Título - When financial imperfections are not the problem, but the solution

Autores - Maria Arvaniti (Umeå University), Andrés Carvajal (University of California)

Presentador - Andrés Carvajal.

Resumen - The BP Deepwater Horizon oil spill of 2010 has focused considerable attention on the potential liability and the operating conduct of big oil companies. This paper suggests that, restricting the insurance opportunities of big oil companies in the asset markets creates incentives to ternalize the welfare effects of such catastrophic events, leading to a Pareto improved allocation for  ociety as a whole. We model a general equilibrium economy with uncertainty, where the probability of each state depends on the level of effort exerted by one agent. When this “effort” is costly and not contracted upon, every equilibrium is Pareto inefficient. We show that generically in the space of endowments, there is a Pareto-improving policy in the form of reallocation of existing assets. The results extend to economies with aggregate uncertainty and complete markets as well as to economies with uninsurable idiosyncratic risk. Hence, opposite to common wisdom, complete markets need not be constrained optimal in economies with this type of externalities.

El Seminario se realizará el miércoles 04 de noviembre de 13:00 a 14:00 hrs, en la Sala P-307 Tercer Piso del edificio Placa de la Facultad de Economía y Negocios de la Universidad de Chile, ubicada en Diagonal Paraguay 257.