Comments to: Richard MacMinn
Uncertainty in Economics and Finance
Dr.
Richard MacMinn
Fall 1999
This is a core course in the finance doctoral program. It covers the fundamentals of risk and uncertainty from a financial markets perspective.
The lectures are provided in the Adobe Acrobat format. Use the latest version of the Acrobat reader so that you can follow the links between the lecture notes. You'll find the links to the lectures in the reading list. More references and links will be added as the semester progresses. The following topic areas will be covered in this course. Follow the links.
Expected and Non-Expected
Utility
Arrow, Kenneth J., "Alternative
Approaches to the
Theory of Choice
In Risk-Taking Situations," Econometrica,
19 (1951), 404-437.
Bertsekas, Dimitri P., Dynamic
Programming and Stochastic Control, Academic Press, 1976.
MacMinn, Richard, (1995). "Lecture Notes on the Expected Utility Theorem," University of Texas
Chateauneuf, A. and M. Cohen (1994). "Risk Seeking with Diminishing
Marginal Utility in a Non-expected Utility Model." Journal of Risk and Uncertainty 9(1): 77-91.
Chew, S.-H. and L.-G. Epstein (1987). "A Unifying Approach to Axiomatic
Non-Expected Utility Theories." University
of Toronto Institute for Policy Analysis Working Paper 8709: 36.
Fishburn, P., Utility Theory for Decision
Making, New York: Hohn Wiley and Sons, 1970.
Friedman, Milton, and Leonard J. Savage, "The Utility Analysis
of Choices Involving Risk,"
Journal of Political Economy, 56 (4)
(August 1948), 279-304.
Kelsey, D. and F. Milne (1990). "The Arbitrage Pricing Theorem with
Non-Expected Utility Preferences." University
of Birmingham Department of Economics Discussion Paper: 22.
Machina, M.-J. (1995). "Review of the Foundations of Rational Choice Under
Risk." Journal of Economic
Literature 33(2): 827-828.
Yaari, M.-E. (1987).
"The Dual Theory of Choice under Risk." Econometrica 55(1): 95-115.
Arrow, Kenneth
J., "The Theory of Risk Aversion," in Essays in the Theory of Risk Bearing.
MacMinn, Richard, (1995). "Lecture Notes on Arrow's 'The
Theory of Risk Aversion'" University of Texas
Baron, David, "Price Uncertainty, Utility, and Industry Equilibrium in
Pure Competition," International
Economic Review, 11 (1970), 463-80.
MacMinn, Richard, (1995). "Lecture Notes on Baron's 'Price Uncertainty, Utility, and Industry
Equilibrium in Pure Competition'" University
of Texas
Biswas, T., "A Note on the Generalized Measures of Risk Aversion," Journal of Economic Theory, 29 (April
1983), 347-52.
Dybvig, P. H. and S. A. Lippman, "An Alternative Characterization
of Decreasing Absolute Risk Aversion," Econometrica, 51 (January 1983), 223-24.
Katz, E., "Relative Risk
Aversion in Comparative Statics," American
Economic Review, 73 (June 1983), 452-53.
Kihlstrom, Richard E., and Leonard J. Mirman, "Risk Aversion With Many
Commodities," Journal of Economic
Theory, 8 (1974), 361-88.
Kihlstrom, Richard E., David Romer, and Steve Williams, "Risk Aversion With Random Initial Wealth," Econometrica,
49 (July 1981), 911-20.
Kimball, Miles S., "Precautionary Saving in the Small and in the Large," Econometrica,
58 (January 1990), 53-73.
MacMinn, Richard, (1995). "Lecture Notes on Prudence" University of Texas
Machina, M. J., "A Stronger Characterization of Declining Risk Aversion," Econometrica,
50 (July 1982), 1069-79.
Pratt, John W., "Risk Aversion in the Small and in the Large," Econometrica,
32 (1964), 122-36.
MacMinn, Richard, (1995). "Lecture Notes on Pratt's 'Risk Aversion in the Small and
in the Large'"
University of Texas
Ross, Stephen, "Some Stronger Measures of Risk Aversion in
the Small and in the Large with Applications," Econometrica,
49 (1981), 621-38.
Sandmo, Agnar, "The Effect of Uncertainty on Saving Decisions," Review of Economic Studies, 37 (1970),
353-60.
MacMinn, Richard, (1995). "Lecture Notes on Sandmo's 'The Effect of Uncertainty
on Saving Decisions'" University of Texas
Yaari, Menahem E., "Some Remarks on Measures of Risk Aversion and on Their
Uses," Journal of Economic Theory,
1 (1969), 315-29.
Brockett,
Patrick L., "Optimal Choice Among Risky Assets for a Class Containing all
the Common Utility Functions," Working Paper, Graduate School of Business,
University of Texas, (June 1983).
Diamond, Peter, and Joseph Stiglitz, "Increases in Risk and in Risk
Aversion," Journal of Economic
Theory, 8 (1974), 337-60.
Hadar, J., and W. R. Russell, "Rules For Ordering Uncertain Prospects," American
Economic Review, 59 (1969), 25-34.
Hanoch, G., and H. Levy, "The Efficiency Analysis of Choices Involving Risk," Review
of Economic Studies, 36 (1969), 335-46.
Katz, E., "A Note on a Comparative Statics Theorem for Choice under
Risk," Journal of Economic Theory,
25 (October 1981), 318-19.
Rothschild, Michael, and Joseph Stiglitz, "Increasing Risk: I. A
Definition," Journal of Economic
Theory, 2 (1970), 225-43.
MacMinn, Richard, (1995). "Lecture Notes on Rothschild
and Stiglitz's 'Increasing Risk: I. A Definition'" University
of Texas
Tesfatsion, Leigh, "Stochastic Dominance and the
Maximization of Expected
Utility,"
Review of Economic Studies, 43
(1976), 301-15.
MacMinn, Richard, (1995). "Lecture Notes on Stochastic
Dominance" University of Texas
Whitmore, G., "The Theory of Skewness Preference," Journal of Business Administration, 6
(Spring 1975), 13-20.
Bertsekas,
Dimitri, "Necessary and Sufficient Conditions For Existence of An Optimal
Portfolio," Journal of Economic
Theory, 8 (1974), 235-47.
Brumelle, Shelby L., "When Does Diversification Between Two Investments Pay," Journal
of Financial and Quantitative Analysis, (June 1974), 473-83.
Cass, David and Joseph Stiglitz, "The Structure of Investor Preferences,
Asset Returns, and Separability in Portfolio Allocation: A Contribution to the
Pure Theory of Mutual Funds," Journal
of Economic Theory, 2 (1970), 122-60.
Cass, David and Joseph Stiglitz, "Risk Aversion and Wealth Effects on Portfolios with Many
Assets,"
Review of Economic Studies, (1972),
331-54.
Hart, O. D., "Some Negative Results on the Existence of Comparative
Static Results in Portfolio Theory," Review
of Economic Studies, 42 (1975), 615-21.
Leland, Hayne, "On The Existence Of Optimal Policies Under
Uncertainty," Journal of Economic
Theory, 4 (1972), 35-44.
Lorie, Henri R., "Another Look at Liquidity Preference," Quarterly
Journal of Economics, Vol. XCIV (February 1980), 167-77.
Mintz, Jack, "Some Additional Results on Investment, Risk
Taking, and Full Loss Offset Corporate Taxation with Interest Deductibility," Quarterly
Journal of Economics, (November 1981), 631-42.
Owen, Joel and Ramon Rabinovitch, "On the Class of Elliptical Distributions
and their Applications to the Theory of Portfolio Choice," Journal
of Finance, (June 1983), 745-52.
Ross, Stephen, "Mutual Fund Separation in Financial Theory - The
Separating Distributions," Journal
of Economic Theory, 17 (1978), 254-86.
MacMinn, Richard, (1995). "Lecture Notes on Ross' 'Mutual Fund Separation
in Financial Theory - The Separating Distributions'" University of Texas
Samuelson, Paul A., "General Proof That Diversification Pays," Journal
of Financial and Quantitative Analysis, 2 (March 1967), 1-13.
MacMinn, Richard, (1995). "Lecture Notes on Samuelson's 'General Proof That
Diversification Pays'" University of Texas
Sandmo, Agnar, "Capital Risk, Consumption, and Portfolio Choice," Econometrica,
37 (October 1969), 586-99.
Stiglitz, J. E., "The Effects of Income, Wealth, and Capital Gains
Taxation on Risk-Taking,"
Quarterly Journal of Economics,
(1969), 263-83.
Stiglitz, J. E., "Some Aspects of the Taxation of Capital Gains," Journal of Public Economics, 21 (July
1983), 257-94.
Aghion, P. and
P. Bolton, "An Incomplete Contracts Approach to Bankruptcy and the
Financial Structure of the Firm," MIT Working Paper, (1988).
Akerlof, George, "Procrastination and Obedience," American
Economic Review, May 1991.
Aivazian, Varouj A.; Callen, Jeffrey L., "Uncertain Externalities, Liability Rules, and Resource
Allocation: Comment," American
Economic Review, 5 (December 1980), 1058-59.
Albrecht, James W. and Albert G. Hart, "A Putty-Clay Model of Demand
Uncertainty and Investment," Scandinavian
Journal of Economics, 85 (1983), 393-402.
Arnott, Richard and Joseph Stiglitz, "Moral Hazard and Non-market Institutions: Dysfunctional Crowding
Out or Peer Monitoring?" American
Economic Review, 81, 1 (March 1991), 179-191.
Baron, David, "Demand Uncertainty in Imperfect Competition," International Economic Review, 12 (June
1971), 196-208.
Blair, M. M., Ed. (1993). The Deal Decade: What Takeovers and Leveraged Buyouts
Means for Corporate Governance. Washington D. C., The Brookings Institution.
Brander, James A., and Tracy R. Lewis, "Oligopoly and Financial Structure: The Limited Liability Effect," American Economic Review, December 1986,
76 5, 956-70.
MacMinn, Richard, (1995). "Lecture Notes on Brander and Lewis'
'Oligopoly and Financial Structure: The Limited Liability Effect'" University of Texas
Brander, James A. and Barbara J. Spencer, "Moral Hazard and Limited
Liability: Implications for the Theory of the Firm," International Economic Review, 30, 4 (November 1989), 833-850.
Bronars, Stephen G. and Donald R. Deere, "The Threat of Unionization, the Use of Debt, and the
Preservation of Shareholder Wealth," Quarterly
Journal of Economics, CVI (February 1991), 231-54
Bulow, J. and J. Shoven, "The Bankruptcy Decision," Bell Journal of Economics, (Spring
1979).
Cheung, S. N. S., "The Contractual Nature of the Firm," Journal of Law and Economics, 26 (April
1983), 1-21.
Coase, Ronald H., "The Nature of the Firm," Economica, November 1937.
Coase, Ronald H., "The Problem of Social Cost," Journal of Law and Economics, 3 (October 1960), 1-44.
Davis, O. A.; Whinston, A. B., "Some Notes on Equating Private and Social
Cost," Southern Economic Journal,
23 (1965), 113-26.
Davis, O. A.; Whinston, A. B., "On Externalities, Information, and the
Government-Assisted Invisible Hand," Economica,
23 (1966), 303-18.
Eapple, D. and A. Raviv, "Product Safety: Liability Rules, Market Structure, and
Imperfect Information," American
Economic Review, 68 (March 1978), 80-95.
Emons, Winand, "Warranties, Moral Hazard, and the Lemons Problem." Journal of Economic Theory, 46, 1
(October 1988), 16-34.
Fama, Eugene F., "The Effects of a Firm's Investment and Financing
Decisions on the Welfare of its Security Holders," American
Economic Review, 68 (3) (June 1978), 272-84.
Fama, Eugene F., "Agency Problems and the Theory of the Firm," Journal
of Political Economy, (April 1980).
Farrell, Joseph, "Information and the Coase Theorem," Journal
of Economic Perspectives, 1 (2) (Fall 1987), 113-29.
Feder, Gershon, Richard E. Just, and Andrew Schmitz, "Futures Market and the Theory of the Firm Under Price
Uncertainty,"
Quarterly Journal of Economics, Vol.
XCIV (March 1980), 317-28.
Forbes, Kevin F., "Limited Liability and the Development of the Business
Corporation," Journal of Law,
Economics, and Organization, Spring 1986, 2 1, 163-77.
Green, Richard, "Investment Incentives, Debt, and Warrants," Journal of Financial Economics, 13
(1984), 115-136.
MacMinn, Richard D., "The Risk-Shifting Problem and Convertible Bonds," Working Paper 88/89-2-21, Graduate
School of Business, University of Texas, Austin, Texas, January 1989.
Greenwood, Peter H.; Ingene, Charles A., "Uncertain Externalities, Liability Rules, and Resource
Allocation,"
American Economic Review, 68 (3)
(June 1978), 300-310.
Greenwood, Peter H.; Ingene, Charles A., "Uncertain
Externalities, Liability Rules, and Resource Allocation: Reply,"American Economic Review, 5 (December
1980), 1060-63.
Grossman, Sanford J., "The Informational Role of Warranties and Private
Disclosure about Product Quality," Journal
of Law and Economics, 24 (December 1981), 461-83.
Hagerty, Kathleen M. and Daniel R. Siegel, "On the Oberservational Equivalence of Managerial Contracts
under Conditions of Moral Hazard and Self-Selection," Quarterly
Journal of Economics, 103, 2 (May 1988), 425-429.
Harris, Milton, and Artur Raviv, "The Theory of Capital Structure," Journal
of Finance, 46 (March 1991), 297-355.
Hart, O. and J. Moore, "Default
and Renegotiation: A Dynamic Model of Debt," LSE Discussion Paper 57, (June 1989)
Holthausen, Duncan, "Hedging and the Competitive Firm Under Price
Uncertainty,"
American Economic Review, 69 (1979),
989-95.
Jensen, Michael, (1986). "Agency Costs of Free Cash Flow, Corporate
Finance, and Takeovers." American
Economic Review 76: 323-29.
MacMinn, Richard, (1995). "Lecture Notes on Holthausen's
' Hedging and the Competitive Firm Under Price Uncertainty'"
University of Texas
Inada, Ken-Ichi; Kuga, Kiyoshi, "Limitations of the `Coase Theorem' on
Liability Rules," Journal of
Economic Theory, 6 (1973), 606-13.
Jensen, M. and W. Meckling, "Theory of the Firm: Managerial Behavior,
Agency Costs and Ownership Structure," Journal
of Financial Economics, 3 (1976), 305-60.
Kahn, Charles M.; Scheinkman, Jose, "Optimal Employment Contracts with
Bankruptcy Constraints," Journal of
Economic Theory, April 1985, 35 2, 343-65.
Kolstad, Charles D. , Thomas S. Ulen, and Gary V. Johnson, "Ex Post Liability for Harm vs.
Ex Ante Safety Regulation: Substitutes or Complements?," American Economic Review, 80 (September
1990), 888-901.
MacMinn, Richard, (1995). "Lecture Notes on Kolstad, Ulen, and Johnson's 'Ex Post Liability for Harm vs. Ex Ante Safety Regulation: Substitutes
or Complements?'"
University of Texas
Leach, John E., "Underemployment with Liquidity-Constrained Multi-period
Firms," Journal of Economic Theory,
44 (1) (February 1988), 81-98.
Leland, Hayne, "Theory of the Firm Facing
Uncertain Demand," American
Economic Review, 62 (1972), 278-91.
MacMinn, Richard, (1995). "Lecture Notes on Leland's 'Theory of the Firm
Facing Uncertain Demand'" University of Texas
MacMinn, Richard D. and Alphonse G. Holtmann, "Technological Uncertainty
and the Theory of the Firm," Southern
Economic Journal, 50 (July 1983), 120-36.
MacMinn, Richard, "Limited Liability, Corporate Objectives, and Management
Decisions," Working Paper 88/89-2-24, Graduate School of Business,
University of Texas, August 1989.
Maksimovic, Vojislav, "Capital Structure in repeated oligopolies," Rand Journal of Economics, 19, 389-407.
McCall, John J., "Probabilistic Microeconomics," Bell Journal of Economics, (Autumn 1971), 403-43.
Meyer, Robert A., "Monopoly Pricing and Capacity Choice Under Uncertainty," American
Economic Review, LXV (June 1975), 326-37.
Meyer, Robert A., "Risk-Efficient Monopoly Pricing for the Multiproduct
Firm`,"
Quarterly Journal of Economics, XC
(August 1976), 461-74.
Modigliani, Franco; Miller, Merton H., "The Cost of Capital, Corporation
Finance and the Theory of Investment," American Economic Review, 1958.
Miller, Merton H., "The Modigliani-Miller Propositions
After Thirty Years," Journal of Economic Perspectives, 2
(Autumn 1988), 99-120.
Myers, Stewart C., "The Determinants of Corporate Borrowing," Journal of Financial Economics, 5 (1977),
147-75.
Myers, Stewart C., and Nicholas S. Majluf, "Corporate Financing and
Investment Decisions When Firms Have Information That Investors Do Not
Have," Journal of Financial
Economics, 13 (1984), 187-221.
Oi, W. Y., "The Economics of Product Safety," Bell Journal of Economics, (Spring 1973), 3-29.
Sah, Raaj K. and Joseph E. Stiglitz, "The Quality of Managers," Quarterly Journal of Economics, CVI
(February 1991), 289-96.
Sandmo, Agnar, "On the Theory of
the Competitive Firm Under Price Uncertainty,"
American Economic Review, 61 (1)
(1971), 65-73.
Sappington, David E. M., "Incentives in Principal-Agent Relationships," Journal
of Economic Perspectives, 5 (2) (Spring 1991), 45-66.
Simon, Herbert A., "Organizations and Markets," Journal
of Economic Perspectives, 5 (2) (Spring 1991), 25-44.
Simon, Marilyn, "Imperfect Information, Costly Litigation, and Product
Quality," Bell Journal of Economics,
12 (1981), 171-84.
Spence, Michael, "Consumer Misperceptions, Product Failure and Producer
Liability,"
Review of Economic Studies, Vol. XLIV
(1977), 561-72.
Stiglitz, Joseph E., "Symposium on Organizations and Economics," Journal
of Economic Perspectives, 5 (2) (Spring 1991), 15-24.
Stiglitz, Joseph E.; Greenwald, Bruce C., "Asymmetric Information and the New Theory of the Firm:
Financial Constraints and Risk Behavior," American
Economic Review, 80 (2) (May 1990), 160-65.
Woodward, Susan E., "Limited Liability in the Theory of the Firm," Zeitschrift fur die gesamte
Staatswissenchaft, 141 4 (December 1985), 601-11.
Arrow, Kenneth
J., "The Role of Securities in the
Optimal Allocation of
Risk-Bearing,"
Review of Economic Studies, 31
(1963-64 edition), 91-96.
MacMinn, Richard, (1995). "Lecture Notes on Arrow's 'The
Role of Securities in the Optimal Allocation of Risk-Bearing'"
University of Texas
Borch, Karl, "Economic Equilibrium Under Uncertainty," International Economic Review, (1968),
339-46.
Bolton, P. and D. Scharfstein, "A Theory of Predation Based on
Agency Problems in Financial Contracting," American Economic Review, (1990)VOL 80, 93-106.
Boyd, J. H. and E. C. Prescott, "Financial Intermediary Coalitions," Journal of Economic Theory, 38 (April
1986), 211-32.
Brennan, Michael and Alan Kraus, "Efficient Financing under
Asymmetric Information," Journal
of Finance, XLII 5, December 1987, 1225-43.
DeAngelo, Harry, "Competition and Unanimity,"
American Economic Review, March 1981,
71 1, 18-27.
Diamond, Peter, "The Role of a Stock Market in
a General Equilibrium Model with Technological Uncertainty," American Economic Review, 57 (1967),
759-73.
Diamond, D. W., "Reputation Acquisition in Debt
Markets," Journal of
Political Economy, (August 1989)
Diamond, D. W., "Monitoring and Reputation: The Choice Between Bank Loans
and Directly Placed Debt," University of Chicago Working Paper, (January
1989)
Diamond, D. W., "Debt Maturity Structure and Liquidity Risk,"
University of Chicago Working Paper, (July 1989)
Diamond, D. W. and P. H. Dybvig, "Bank Runs Deposit Insurance
and Liquidity," Journal
of Political Economy, 91 (June 1983), 401-19.
Dreze, Jacques H., "Market Allocation Under Uncertainty," European Economic Review, 2 (1970-71
edition), 133-65.
Ekern, Steinar and Robert Wilson, "On the Theory of the Firm in an Economy
with Incomplete Markets," Bell
Journal of Economics, 5 (Spring 1974), 171-180.
MacMinn, Richard, (1995). "Lecture Notes on Ekern and
Wilson's 'On the Theory of the Firm in an Economy with Incomplete Markets'"
University of Texas
Fama, E., "Perfect Competition and Optimal Production Decisions Under
Uncertainty," Bell Journal of
Economics, (1972).
Flannery, M. J., "Asymmetric Information and
Risky Debt Maturity Choice," Journal of Finance, 41 (March 1986), 19-38.
Franke, Gunter, "Costless Signalling in
Financial Markets," Journal
of Finance, 42, 4 (September 1987), 809-22.
Gale, D. and M. Hellwig, "Incentive Compatible Debt Contracts:
The One Period Problem," Review
of Economic Studies, 52 (October 1985), 647-64.
Greenwald, Bruce and Joseph Stiglitz, "Externalities in Economies
with Imperfect Information and Incomplete Markets," Quarterly Journal of Economics, (May
1986), 229-64.
Greenwood, Jeremy and R. Preston McAfee, "Externalities and Asymmetric
Information," Quarterly
Journal of Economics, CVI (February 1991), 103-22.
Harris, Milton, and Robert Townsend, "Resource Allocations Under
Asymmetric Information," Econometrica,
(January 1981), 33-64.
Harris, M. and A. Raviv, "Capital Structure and the Informational Role of
Debt," CRSP Working Paper, University of Chicago, (June 1989)
Hellwig, Martin F., "Bankruptcy, Limited Liability,
and The Modigliani-Miller Theorem," American Economic Review, 71 (March 1981), 155-170.
Hellwig, M., "A Model of Borrowing and
Lending with Bankruptcy," Econometrica,
45 (1977), 1879-1906.
Jensen, M., "Agency Costs of Free Cash
Flow, Corporate Finance, and Takeovers," American Economic Review, 76 (1986), 323-29.
Kreps, D. and R. Wilson, "Reputation and Imperfect Information," Journal of Economic Theory, (August
1982).
Leland, Hayne E., "Information, Managerial Choice
and Stockholder Unanimity," Review
of Economic Studies, October 1978, 45 3, 527-34.
Milgrom, P. and J. Roberts, "Predation, Reputation, and Entry Deterrence,"
Journal of Economic Theory, (August
1982).
Okuno, Masahiro, "Bankruptcy, Limited Liability and Financial
Intermediation: A General Equilibrium Approach," Economic Studies Quarterly, August 1980, 31 2, 139-49.
Radner, Roy, "A Note on Unanimity of Stockholder's Preferences Among
Alternative Production Plans: A Reformulation of the Ekern-Wilson Model," Bell Journal of Economics, 5 (1974),
181-184.
Radner, R., "Competitive Equilibrium Under
Uncertainty," Econometrica,
(1968), 31-58.
Ross, Stephen A., "Options and Efficiency,"
Quarterly Journal of Economics, XC
(February 1976), 75-89.
MacMinn, Richard, (1995). "Lecture Notes on Ross'
'Options and Efficiency'" University of Texas
Satterthwaite, Mark A., "On the Scope of the Stockholder Unanimity
Theorems," International Economic
Review, February 1981, 22 1, 119-33.
Spatt, C., "Credit Reputation Equilibrium and the Theory of Credit
Markets," Working Paper, Carnegie-Mellon, (May 1983).
Stiglitz, Joseph E., "A Re-Examination of the
Modigliani-Miller Theorem," American
Economic Review, 59 (5) (December 1969), 784-93.
Stiglitz, Joseph E., "Some Aspects of the Pure Theory of Corporate
Finance: Bankruptcies and Takeovers," Bell
Journal of Economics, 3 (1972), 458-82.
Stiglitz, Joseph E., "On the Irrelevance of
Corporate Financial Policy," American Economic Review, 64 (December 1974), 851-66.
Townsend, R. M., "Optimal Contracts and Competitive Markets With Costly
State Verification," Journal of
Economic Theory, 21 (October 1979), 265-93.
Grossman, S.
J., "An Introduction to the Theory
of Rational Expectations under Asymmetric Information," Review of Economic Studies, 48 (October
1981), 541-59.
Grossman, S., "The Existence of Futures Markets, Noisy Rational
Expectations and Informational Externalities," Journal of Econometrics , 3 (August 1975), 255-72.
Grossman, S., and Joseph Stiglitz, "On the Impossibility of
Informationally Efficient Markets," American Economic Review, 70 (June 1980), 393-408.
Jordan, J. S., and R. Radner, "Rational Expectations in Microeconomic
Models: An Overview," Journal of
Economic Theory , 26 (April 1982), 201-23.
Muth, J., "Rational Expectations and the
Theory of Price Movements," Econometrica,
29 (July 1961), 314-35.
Radner, R., "Existence of Equilibrium of
Plans, Prices, and Price Expectations in a Sequence of Markets,"
Econometrica, (1972), 289-303.
Akerlof,
George, "The Market For `Lemons':
Qualitative Uncertainty and the Market Mechanism," Quarterly Journal of Economics, 89
(1970), 488-500.
MacMinn, Richard, (1995). "Lecture
Notes on Akerlof's 'The Market For `Lemons': Qualitative Uncertainty and the
Market Mechanism'" University of Texas
Arrow, Kenneth J., "Insurance, Risk and Resource Allocation," in Essays in the Theory of Risk-Bearing.
Arrow, Kenneth J., "Uncertainty and the Welfare
Economics of Medical Care," American
Economic Review, 53 (1963), 941-73.
Arrow, Kenneth J., "The Economics of Moral Hazard:
Further Comment," American
Economic Review, 58 (1968), 537-39.
Kihlstrom, Richard E., and Mark Pauly, "The Role of Insurance in the
Allocation of Risk," American
Economic Review, (1971), 371-79.
Laffont, J., "Court Against Moral Hazard," Journal of Mathematical Economics, 3 (1976), 269-83.
Pauly, Mark V., "The Economics of Moral Hazard,"
American Economic Review, 58 (1968),
531-37.
Pauly, Mark V., "Over-insurance and the Public
Provision of Insurance: The Roles of Moral Hazard and Adverse Selection,"
Quarterly Journal of Economics, 88
((1974), 44-54.
Rothschild, Michael and Joseph Stiglitz, "Equilibrium in Competitive
Insurance Markets: An Essay on the Economics of Imperfect Information,"
Quarterly Journal of Economics, 90
(1976), 629-50.
MacMinn, Richard, (1995). "Lecture Notes on Rothschild
and Stiglitz's 'Equilibrium in Competitive Insurance Markets: An Essay on the
Economics of Imperfect Information'" University of Texas
Shavell, S., "On Moral Hazard and Insurance," mimeo.
Shavell, Steven, "A Note on the Incentive to Reveal Information," Geneva Papers, 14 (January 1989), 66-74.
Spence, Michael, and Richard Zeckhauser, "Insurance, Information, and
Individual Action," American
Economic Review, 61 (1971), 380-87.
Wilson, Charles, "A Model of Insurance Markets with Incomplete
Markets," Journal of Economic Theory,
16 (1977), 167-207.
Arrow, Kenneth
J., "Economic Welfare and the Allocation of Resources to Invention,"
in Essays in the Theory of Risk-Bearing.
Hirshleifer, Jack, "The Private and Social Value
of Information and the Reward to Inventive Activity," American Economic Review, 61 (September
1971), 561-74.
Kohn, M. and S. Shavell, "The Theory of Search," Journal of Economic Theory, 9 (october 1974), 93-123.
Lippman, S. and John J. McCall, "The Economics of Job Search: A
Survey," Economic Inquiry, 14
(June 1976), 155-89.
MacMinn, Richard D., "Search and Market Equilibrium,"
Journal of Political Economy, 88
(April 1980), 308-27.
MacMinn, Richard D., "Search and the Market for Lemons," Information Economics and Policy,
(1986).
McCall, John J., "The Economics of Information
and Job Search," Quarterly
Journal of Economics, (February 1970), 113-26.
Milgrom, Paul R., "Good News and Bad News: Representation Theorems and
Applications," Bell Journal of
Economics, 12 (Autumn 1981), 380-91.
Nelson, Richard R., "The Role of Knowledge in
R&D Efficiency," Quarterly
Journal of Economics, Vol. XCVII (August 1982), 453-70.
Rothschild, Michael, "Models of Market Organization
with Imperfect Information: A Survey," Journal of Political Economy, 81 (1973), 1283-1308.
Stigler, George, "The Economics of Information,"
Journal of Political Economy, 69
(June 1961), 213-25.
Ambarish,
Ramasastry; John, Kose; Williams, Joseph, "Efficient Signalling with
Dividends and Investments”, Journal
of Finance, 42 (2) (June 1987), 321-43.
Arrow, Kenneth J., "Higher Education as a Filter," Journal of Public Economics, 2 (July
1973), 193-216.
Bhattacharya, Sudipto, "Nondissipative Signaling
Structures and Dividend Policy," Quarterly Journal of Economics, 95, 1 (August 1980), 1-24.
Blinder, A. and Joseph Stiglitz, "Money, Credit Constraints, and
Economic Activity," American
Economic Review, 73 (1983), 297-302.
Campbell, Tim S.; Kracaw, William A., "Information Production, Market
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