Real Indeterminacy in Incomplete Financial Market Economies without Aggregate Risk
AbstractWe analyze an exchange economy with incomplete financial markets and assets whose returns are fixed in units of account. Moreover, we assume absence of aggregate risk, i.e., that individual preferences and total resources are constrained to be invariant across different states of the world. In this framework we show that the set of (commodity) price-endowment equilibria is diffeomorphic to a Euclidean space. We then exploit this global parameterization to prove that the set of equilibrium allocations associated with each endowment in a generic set contains a smooth manifold, whose dimension is equal to the number of "missing" assets.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Springer in its journal Economic Theory.
Volume (Year): 1 (1991)
Issue (Month): 3 (July)
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00199/index.htm
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Alessandro, CITANNA & SCHMEDDERS, Karl, 2002.
"Controlling price volatility through financial innovation,"
Les Cahiers de Recherche
749, HEC Paris.
- Alessandro Citanna & Karl Schmedders, 2002. "Controlling Price Volatility Through Financial Innovation," Discussion Papers 1338, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If references are entirely missing, you can add them using this form.