The Effect of Better Information on Growth and Welfare by Bernhard Eckwert and Itzhak Zilcha ∗ June 2001 Bernhard Eckwert Department of Economics University of Chemnitz Germany Itzhak Zilcha The Eitan Berglas School of Economics Tel Aviv University Israel ∗ Financial support from the Stifterverband f¨ ur die Deutsche Wissenschaft and the Commerzbank is gratefully acknowledged.