01768cas a2200253 a 4500 AALejournalIMF004879 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451866599 1018-5941 BD-DhAAL BD-DhAAL Eckwert, Bernhard. Implications of More Precise Information for Technological Development and Welfare / Bernhard Eckwert, Burkhard Drees. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (23 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes the dynamic interactions between the precision of information, technological development, and welfare within an overlapping generations model. More precise information about idiosyncratic production shocks has ambiguous effects on technological progress and welfare, which depend critically on the risk sharing capacity of the economy's financial system. For example, we show that with efficient risk sharing more precise information adversely affects the equilibrium risk allocation and creates a negative uncertainty-related welfare effect, at the same time as it accelerates technological progress and increases R and D investment. Mode of access: Internet Drees, Burkhard. IMF Working Papers; Working Paper ; No. 2007/095 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/095/001.2007.issue-095-en.xml IMF e-Library