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Olga KUZNETSOVA (PhD., High Scholl of Economics) – ” The Value of Information in Segmented Economies”

December 11, 12:15 pm - 1:30 pm

The Macroeconomics Seminar: Every Monday at 12:15 pm.

Time: 12:15 pm – 1:30 pm
Date: 04th of Décember 2017
Place: Room 3001.

Olga KUZNETSOVA (PhD., High Scholl of Economics) – ” The Value of Information in Segmented Economies”

Abstract: We study the social value of information in  a general two-region model, which captures three important characteristics: globalization of markets, segmentation of fundamentals and informational asymmetry between regions. We show that the welfare properties of information in segmented economy differ significantly from their counterpart in one-region model. We prove that Angeletos and Pavan (2007)’s result (the negative gap between efficient and equilibrium degree of coordination is sufficient for welfare to increase in precision of private information economies with strategic substitutability), does not hold in segmented economy.  We also prove  that a high (low) gap between efficient and equilibrium distributions does not imply a positive (negative) value of information, in a two-region distorted economy, when externalities are strong enough. Moreover, we obtain the conditions under which the regional value of information differs for its social value. These findings indicate under which conditions regional information policy could be inefficient. After discussing the general model, we illustrate our findings with a number of examples.

 Organizers:
Julien PRAT (CREST )

Sponsors:
CREST

Address : ENSAE ParisTech  5, avenue Henry Le Chatelier 91120 Palaiseau, How to come?

 

Details

Date:
December 11
Time:
12:15 pm - 1:30 pm
Event Categories:
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