Journal Article
Self-Insurance and the Risk-Sharing Role of Money
Abstract: Overcoming the lack of coincidence of wants is a well-acknowledged role of money. In this review, I illustrate that the use of money also promotes risk-sharing in the society: when individuals hold money, it helps other individuals mitigate their own liquidity risks.
Keywords: self-insurance; money; toy model; risk-sharing;
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https://www.richmondfed.org/-/media/richmondfedorg/publications/research/economic_quarterly/2018/q1/wong.pdf
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Bibliographic Information
Provider: Federal Reserve Bank of Richmond
Part of Series: Economic Quarterly
Publication Date: 2018
Issue: 1Q
Pages: 35-52