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Full and constrained pareto optimality with incomplete financial markets

Author

Listed:
  • Mendolicchio, Concetta

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Pietra, Tito

    (Università di Bologna-DSTAT)

Abstract

"We study the efficiency properties of equilibria in a neighborhood of economies with Pareto optimal (PO) initial endowments, when the number of agents is finitely large. We provide conditions under which, for all the economies in some open neighborhood of the PO reference economy, all the equilibria are constrained PO (CPO). We also provide conditions under which each open neighborhood of these exceptional PO economies contains both open sets of economies with CPO equilibria and open sets of economies where CPO fails." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Mendolicchio, Concetta & Pietra, Tito, 2018. "Full and constrained pareto optimality with incomplete financial markets," IAB-Discussion Paper 201822, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201822
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    References listed on IDEAS

    as
    1. Mendolicchio, C. & Pietra, T., 2019. "A re-examination of constrained Pareto inefficiency in economies with incomplete markets," Journal of Mathematical Economics, Elsevier, vol. 80(C), pages 39-55.
    2. Atsushi Kajii & Antonio Villanacci & Alessandro Citanna, 1998. "Constrained suboptimality in incomplete markets: a general approach and two applications," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 11(3), pages 495-521.
    3. Geanakoplos, J. & Polemarchakis, H., 1985. "Existence,regularity, and constrained suboptimality of competitive allocations when the asset market is incomplete," LIDAM Discussion Papers CORE 1985037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Lang, Julia, 2018. "Employment effects of language training for unemployed immigrants," IAB-Discussion Paper 201821, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    More about this item

    Keywords

    Finanzmarkt ; Gleichgewichtstheorie ; Marktunvollkommenheit ; Pareto; Vilfredo ; Verteilungstheorie ; Volkswirtschaftstheorie;
    All these keywords.

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets

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