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Competitive Equilibria for Infinite-Horizon Economies with Incomplete Markets

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Author Info
Alejandro Hernandez () (Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM))
Manuel Santos (Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM))
Abstract

In this paper we consider a sequential trading economy with incomplete financial markets and a finite number of infinitely lived agents. We propose a specification of agents' budget sets and show that such specification features several desirable properties. We then establish the existence of an equilibrium for a regular class of economies.

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Publisher Info
Paper provided by Centro de Investigacion Economica, ITAM in its series Working Papers with number 9407.

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Length: 34 pages
Date of creation: 1994
Date of revision:
Handle: RePEc:cie:wpaper:9407

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  1. Fernando Alvarez & Urban J. Jermann, 1998. "Asset Pricing when Risk Sharing is Limited by Default," NBER Working Papers 6476, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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