Social Security And Equity Investment In An Economy With Financial Intermediaries And Costly Monitoring
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Overview: This research paper aims at extending the analysis of the efficiency of equilibria in an OLG framework with asymmetric information. Study on the stationary states of an economy where consumers, firms and financial intermediaries are at work. The economy is affected by ex post moral hazard due to costly state verification; because of this inefficiency in the private financial system, a result different from the Samuelson-Diamond conclusions about the Pareto ranking of different equilibria is derived.