Espen Henriksen
University of California, Davis
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Featured researches published by Espen Henriksen.
Journal of Economic Theory | 2012
Espen Henriksen; Stephen E. Spear
In this paper, we show that within the set of stochastic three-period-lived OLG economies with productive assets (such as land), markets are necessarily sequentially incomplete, and agents in the model do not share risk optimally. We start by characterizing perfect risk-sharing and find that it requires state-dependent consumption claims which depend only on the exogenous shock realizations. We show then that the recursive competitive equilibrium of any overlapping generations economy with weakly more than three generations is not strongly stationary. This then allows us to show directly that there are short-run Pareto improvements possible in terms of risk-sharing and hence, that the recursive competitive equilibrium is not Pareto optimal. We then show that a financial reform which eliminates the equity asset and replaces it with zero net supply insurance contracts (Arrow securities) will implement to Pareto optimal stochastic steady-state known to exist in the model. Finally, we also show via numerical simulations that a system of government taxes and transfers can lead to a Pareto improvement over the competitive equilibrium in the model.
National Bureau of Economic Research | 2009
David K. Backus; Espen Henriksen; Frederic J. Lambert; Chris I. Telmer
Journal of Monetary Economics | 2013
Espen Henriksen; Finn E. Kydland; Roman Šustek
National Bureau of Economic Research | 2013
David K. Backus; Thomas F. Cooley; Espen Henriksen
Archive | 2001
Espen Henriksen; Karen Helene Ulltveit-Moe; Frode Steen
2008 Meeting Papers | 2008
Roman Šustek; Finn E. Kydland; Espen Henriksen
Journal of International Economics | 2014
David K. Backus; Thomas F. Cooley; Espen Henriksen
Computing in Economics and Finance | 2006
Espen Henriksen; Stephen E. Spear
National Bureau of Economic Research | 2014
Joel M. David; Espen Henriksen; Ina Simonovska
Archive | 2012
Espen Henriksen; Frederic J. Lambert