Sharing Some Thoughts on Weitzman's The Share Economy
NBER Working Paper No. 1734 (Also Reprint No. r1153)
This paper explores the positive and normative aspects of share contracts. In particular, the paper explores the properties of a share system as advanced by Martin Weitzman in The Share Economy.The model employed highlights a "macroeconomic externality" created in a multi-sector economy with imperfect competition. The introduction of share contracts is shown to influence the comparative static properties of the model economy and in some cases to lead to Pareto superior outcomes.
Published: "Will Share Contracts Increase Economic Welfare? From The American Economic Review, Vol. 78, No. 1, (March 1988).