Failure of the index theorem in an incomplete market economy
AbstractRecently, it was proved that the index of an economy with incomplete real asset markets is typically +1 when the degree of incompleteness, which is defined as the difference between the number of states and the number of securities, is an even number. This paper considers the case where the degree of incompleteness is an odd number and proves that any odd number can be realized as the index of such an economy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Mathematical Economics.
Volume (Year): 48 (2012)
Issue (Month): 6 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/jmateco
Incomplete market; Index theorem; Homotopy;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:hal:journl:halshs-00287677 is not listed on IDEAS
- Bich, Philippe, 2006. "On the orientability of the asset equilibrium manifold," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/6111, Paris Dauphine University.
- Momi, Takeshi, 2003. "The index theorem for a GEI economy when the degree of incompleteness is even," Journal of Mathematical Economics, Elsevier, Elsevier, vol. 39(3-4), pages 273-297, June.
- Bottazzi, Jean-Marc & Hens, Thorsten, 1996. "Excess Demand Functions and Incomplete Markets," Journal of Economic Theory, Elsevier, Elsevier, vol. 68(1), pages 49-63, January.
- Dierker, Egbert, 1972. "Two Remarks on the Number of Equilibria of an Economy," Econometrica, Econometric Society, Econometric Society, vol. 40(5), pages 951-53, September.
- Demarzo, Peter M. & Eaves, B. Curtis, 1996. "Computing equilibria of GEI by relocalization on a Grassmann manifold," Journal of Mathematical Economics, Elsevier, Elsevier, vol. 26(4), pages 479-497.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780195102680, October.
- Momi, Takeshi, 2010. "Excess demand function around critical prices in incomplete markets," Journal of Mathematical Economics, Elsevier, Elsevier, vol. 46(3), pages 293-302, May.
- Geanakoplos, J D & Polemarchakis, H M, 1980. "On the Disaggregation of Excess Demand Functions," Econometrica, Econometric Society, Econometric Society, vol. 48(2), pages 315-31, March.
- Brown, Donald J & DeMarzo, Peter M & Eaves, B Curtis, 1996. "Computing Equilibria When Asset Markets Are Incomplete," Econometrica, Econometric Society, Econometric Society, vol. 64(1), pages 1-27, January.
- Philippe Bich, 2006. "On the orientability of the asset equilibrium manifold," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers), HAL halshs-00287677, HAL.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.