INFORMATION ASYMMETRY AND ECONOMIC GROWTH
Autor (i): Cristiana Matei
Cuvinte cheie: asymmetric information; sustainable growth; degree of operational leverage;
Abstract:
The paper emphasizes the fact that most of the things we consider essential for our society are not fully based on information asymmetry, a concept highlighted by the theory developed by G. Akerlof, M. Spence, J. Stiglitz in the 70's. The effects of information asymmetry are visible everywhere; the current financial crisis is such an eloquent example - among its many causes may be an issue of information asymmetry where someone knew that crediting could not continue permanently, but that person preferred to speculate at the expense of those who made loans relying on the assurances given by the same persons who knew the system would not work forever. Information asymmetry is complex; it is not a mere lie or about concealing the truth, but it is the result of a practical calculation made by the buyer, who does not want to be properly informed, as that would imply some costs he or she is not willing to pay. We can exemplify such an attitude when one wishes to buy a house, which would mean to look for information, know other buyers' experiences, discuss with the builders, the architects, the engineers, see many houses, know prices; these are activities that require time and money. Should one buy the house and should it not meet one's expectations, then it is mainly the buyer's fault due to the lack of information. Therefore, it is useful to investigate the relationship between information asymmetry and economic growth, especially as one of the perverse effects of information asymmetry is that there is not a clear obligation of the seller to voluntarily offer complete information, but on the other hand, he or she is obliged to correctly answer all questions.
The paper emphasizes the fact that most of the things we consider essential for our society are not fully based on information asymmetry, a concept highlighted by the theory developed by G. Akerlof, M. Spence, J. Stiglitz in the 70's. The effects of information asymmetry are visible everywhere; the current financial crisis is such an eloquent example - among its many causes may be an issue of information asymmetry where someone knew that crediting could not continue permanently, but that person preferred to speculate at the expense of those who made loans relying on the assurances given by the same persons who knew the system would not work forever. Information asymmetry is complex; it is not a mere lie or about concealing the truth, but it is the result of a practical calculation made by the buyer, who does not want to be properly informed, as that would imply some costs he or she is not willing to pay. We can exemplify such an attitude when one wishes to buy a house, which would mean to look for information, know other buyers' experiences, discuss with the builders, the architects, the engineers, see many houses, know prices; these are activities that require time and money. Should one buy the house and should it not meet one's expectations, then it is mainly the buyer's fault due to the lack of information. Therefore, it is useful to investigate the relationship between information asymmetry and economic growth, especially as one of the perverse effects of information asymmetry is that there is not a clear obligation of the seller to voluntarily offer complete information, but on the other hand, he or she is obliged to correctly answer all questions.
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