Speculation and Risk Sharing with New Financial Assets
I investigate the effect of financial innovation on portfolio risks when traders have belief disagreements. I decompose traders’ average portfolio risks into two components: the uninsurable variance, defined as portfolio risks that would obtain without belief disagreements, and the speculative varia...
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| Format: | Article |
| Language: | en_US |
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Oxford University Press
2013
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| Online Access: | http://www.nber.org/papers/w17506 http://hdl.handle.net/1721.1/82893 https://orcid.org/0000-0003-0840-1848 |