Sequentially complete markets remain incomplete
AbstractWe show by means of an example that the result of Arrow [Arrow, K.J. (1953), Le rôle des valeurs boursières pour la répartition la meilleure des risques, Econométrie, 41-47, CNRS, Paris; translated as The role of securities in the optimal allocation of risk bearing, Review of Economic Studies, 31, 91-96] is problematic when there exist multiple equilibrium continuations to the initial-period component of an intertemporal equilibrium.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 100 (2008)
Issue (Month): 3 (September)
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Web page: http://www.elsevier.com/locate/ecolet
Other versions of this item:
- DREZE, Jacques H. & HERINGS, Jean-Jacques P., . "Sequentially complete markets remain incomplete," CORE Discussion Papers RP -2034, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Drèze,Jacques H. & Herings,P. Jean-Jacques, 2003. "Sequentially complete Markets Remain Incomplete," Research Memorandum 058, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- DRÈZE, Jacques & HERINGS, Jean-Jacques, 2003. "Sequentially complete markets remain incomplete," CORE Discussion Papers 2003085, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
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