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Macro Markets Creating Institutions for Managing Society's Largest Economic
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Macro Markets Creating Institutions for Managing Society's Largest Economic Risks (Clarendon Lectures in Economics) Hardcover - 1994

by Robert Shiller


From the publisher

Arguing that we have largely inadequate financial markets, dealing with relatively small risks, Robert Shiller makes a unique set of proposals for marketizing the biggest economic risks faced by society today, risks that really matter to most people. The new markets could diminish the impact
of international economic fluctuations and reduce the inequality of wealth. He proposes new international markets for claims on national incomes, on components and aggregates of national incomes, and for property such as real estate, and argues that these markets might dwarf our stock markets in
their activity and significance. He challenges the widespread presumption that any such new market would be infeasible, by offering solutions to technical problems of measurement and settlement. There are proposals for implementing markets in perpetual claims and a substantial section on the
construction of index numbers for use in settlement in the new markets.

First line

Living standards are not fully insurable because of moral-hazard problems: if people or organizations knew that their incomes were guaranteed regardless of the amount of effort that they put in, then there would be a markedly reduced incentive to make efforts to maintain income.

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  • Title Macro Markets Creating Institutions for Managing Society's Largest Economic Risks (Clarendon Lectures in Economics)
  • Author Robert Shiller
  • Binding Hardcover
  • Edition Third Printing
  • Publisher Oxford University Press, USA, Oxford
  • Date June 2, 1994
  • ISBN 9780198287827
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Macro Markets: Creating Institutions for Managing Society's Largest Economic Risks (Clarendon Lectures in Economics)

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Macro Markets : Creating Institutions for Managing Society's Largest Economic Risks

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Macro Markets: Creating Institutions for Managing Society's Largest Economic Risks (Clarendon...
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by Robert Shiller

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Macro markets : creating institutions for managing society's largest economic risks / Robert J....

Macro markets : creating institutions for managing society's largest economic risks / Robert J. Shiller

by Shiller, Robert J.

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Oxford : Clarendon, 1993. 1st edition. Hardcover. Fine cloth copy in a very good, slightly edge-nicked and dust-dulled dust-wrapper, now mylar-sleeved. Remains particularly well-preserved overall; tight, bright, clean and strong. Physical description; 254 pp. Contents; Preface; Acknowledgements; Contents; 1 Introduction; The ideal: A world market for major income risks; Hedging income risk in today's markets; Markets as inventions; Markets as accidents of history; 2 Psychological Barriers; Research on psychology and risk perceptions; Lack of information and ambiguity; Demand for insurance by firms; Social-psychological factors; Gambling behavior; Speculative behavior; Promoting proper public use of macro markets; Psychological barriers: summing up; 3 Mechanisms for Hedging Long Streams of Income; Settlement based on cash-market asset price. Settlement based on measures of income rather than priceExchange-guaranteed securities markets for perpetual claims on indices; Perpetual futures; Rational… Read More
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Macro Markets: Creating Institutions for Managing Society's Largest Economic Risks (Clarendon...
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by Shiller, Robert

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