ARTICLE IN PRESS


Recursive Contracts and Endogenously
Incomplete Markets
M.
*
  Golosov*, A. Tsyvinski, N. Werquin{
Princeton University, Princeton, NJ, United States

Yale University, New Haven, CT, United States
{
Toulouse School of Economics, Toulouse, France

Contents
1. Introduction                                       726
2. A Simple Model of Dynamic Insurance                           728
  2.1 Environment                                     728
  2.2 The Revelation Principle and  ...