Financial Innovation and Risk Sharing

Financial Innovation and Risk Sharing

by Franklin Allen, Douglas Gale
     
 

Franklin Allen and Douglas Gale have contributed substantially to the study of financial innovation, developing economic models to address the question of whether the market provides institutions and opportunities for individuals to share risks efficiently. In this book they assemble some of their key papers along with a five-chapter overview that not only

Overview

Franklin Allen and Douglas Gale have contributed substantially to the study of financial innovation, developing economic models to address the question of whether the market provides institutions and opportunities for individuals to share risks efficiently. In this book they assemble some of their key papers along with a five-chapter overview that not only synthesizes their work but provides a historical and institutional review and a discussion of alternative approaches as well.The lengthy overview surveys the authors' approach to financial innovation, principally their development of a basic theory of risk sharing in an economy with incomplete markets. The first two chapters summarize the history of innovation and illustrate the types of innovation, innovators, and motives for innovation. Chapters three and four look at industrial organization approaches to innovation and outline the authors' theory. The fifth chapter discusses other approaches and an agenda for future research.

Editorial Reviews

Booknews
The authors have contributed substantially to the study of financial innovation, developing economic models to address the question of whether the market provides opportunities and institutions for individuals to share risks efficiently. In this volume, they assemble some of their key papers, along with a five-chapter overview that not only synthesizes their work but also provides a historical and institutional review as well as a discussion of alternative approaches. Annotation c. Book News, Inc., Portland, OR (booknews.com)

Product Details

ISBN-13:
9780262514651
Publisher:
MIT Press
Publication date:
01/01/2003
Edition description:
New Edition
Pages:
389
Product dimensions:
6.20(w) x 9.00(h) x 1.10(d)
Age Range:
18 Years

Meet the Author

Franklin Allen is the Nippon Life Professor of Finance and Economics at the Wharton School, University of Pennsylvania.

Douglas Gale is Professor of Economics at New York University.

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