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Implications of More Precise Information for Technological Development and Welfare, Bernhard Eckwert, Burkhard Drees

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Abstract
This paper analyzes the dynamic interactions between the precision of information, technological development, and welfare within an overlapping generations model. More precise information about idiosyncratic production shocks has ambiguous effects on technological progress and welfare, which depend critically on the risk sharing capacity of the economy's financial system. For example, we show that with efficient risk sharing more precise information adversely affects the equilibrium risk allocation and creates a negative uncertainty-related welfare effect, at the same time as it accelerates technological progress and increases R&D investment
Table Of Contents
Contents; I. Introduction; II. The Model Economy; III. Information Systems; IV. Information, Welfare, and Technological Development; A. More Precise Information in an Economy Without Risk Sharing; B. More Precise Information in an Economy With Risk Sharing; V. Conclusion; Table; 1. Welfare Effects of More Precise Information; Appendix; References
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (25 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781452771311

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