# Recursive equilibrium with Price Perfect Foresight and a minimal state space

## Author

## Abstract

## Suggested Citation

**Recursive equilibrium with Price Perfect Foresight and a minimal state space**," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 61(1), pages 1-54, January.

*RePEc:spr:joecth:v:61:y:2016:i:1:p:1-54*

DOI: 10.1007/s00199-015-0927-2

## Download full text from publisher

As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

## Other versions of this item:

- Rodrigo Jardim Raad, 2016.
"
**Recursive equilibrium with Price Perfect Foresight and a minimal state space**," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 61(1), pages 1-54, January.

## References listed on IDEAS

- Carlos Alós-Ferrer & Georg Kirchsteiger, 2015.
"
**Learning and market clearing: theory and experiments**," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(2), pages 203-241, October. - Duffie, Darrell, et al, 1994.
"
**Stationary Markov Equilibria**," Econometrica, Econometric Society, vol. 62(4), pages 745-781, July. - Benveniste, L M & Scheinkman, J A, 1979.
"
**On the Differentiability of the Value Function in Dynamic Models of Economics**," Econometrica, Econometric Society, vol. 47(3), pages 727-732, May. - Blume, Lawrence E. & Easley, David, 1982.
"
**Learning to be rational**," Journal of Economic Theory, Elsevier, vol. 26(2), pages 340-351, April. - Alessandro Citanna & Paolo Siconolfi, 2010.
"
**Recursive Equilibrium in Stochastic Overlapping-Generations Economies**," Post-Print hal-00537071, HAL. - Kubler, Felix & Schmedders, Karl, 2002.
"
**Recursive Equilibria In Economies With Incomplete Markets**," Macroeconomic Dynamics, Cambridge University Press, vol. 6(02), pages 284-306, April. - Tarek Coury & Emanuela Sciubba, 2012.
"
**Belief heterogeneity and survival in incomplete markets**," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(1), pages 37-58, January.- Tarek Coury & Emanuela Sciubba, 2006.
"
**Belief Heterogeneity and Survival in Incomplete Markets**," Birkbeck Working Papers in Economics and Finance 0613, Birkbeck, Department of Economics, Mathematics & Statistics.

- Tarek Coury & Emanuela Sciubba, 2006.
"
- Magill, Michael & Quinzii, Martine, 1994.
"
**Infinite Horizon Incomplete Markets**," Econometrica, Econometric Society, vol. 62(4), pages 853-880, July.- Magill, M. & Quinzii, M., 1992.
"
**Infinite Horizon Incomplete Markets**," Papers 413a, California Davis - Institute of Governmental Affairs. - Magill, M. & Quinzii, M., 1993.
"
**Infinite Horizon Incomplete Markets**," Papers 9320, Southern California - Department of Economics. - Magill, M. & Quinzii, M., 1992.
"
**Infinite Horizon Incomplete Markets**," DELTA Working Papers 92-26, DELTA (Ecole normale supérieure).

- Magill, M. & Quinzii, M., 1992.
"
- Miao, Jianjun, 2006.
"
**Competitive equilibria of economies with a continuum of consumers and aggregate shocks**," Journal of Economic Theory, Elsevier, vol. 128(1), pages 274-298, May.- Jianjun Miao, 2003.
"
**Competitive Equilibria of Economies with a Continuum of Consumers and Aggregate Shocks**," Macroeconomics 0310001, University Library of Munich, Germany. - Jianjun Miao, 2004.
"
**Competitive Equilibria of Economies with a Continuum of Consumers and Aggregate Shocks**," CEMA Working Papers 460, China Economics and Management Academy, Central University of Finance and Economics.

- Jianjun Miao, 2003.
"
- Mirman, Leonard J. & Morand, Olivier F. & Reffett, Kevin L., 2008.
"
**A qualitative approach to Markovian equilibrium in infinite horizon economies with capital**," Journal of Economic Theory, Elsevier, vol. 139(1), pages 75-98, March.- Leonard J Mirman & Olivier F. Morand & Kevin L. Reffett, 2004.
"
**A Qualitative Approach to Markovian Equilibrium in Infinite Horizon Economies with Capital**," Levine's Bibliography 122247000000000224, UCLA Department of Economics.

- Leonard J Mirman & Olivier F. Morand & Kevin L. Reffett, 2004.
"
- Sean Crockett, 2008.
"
**Learning competitive equilibrium in laboratory exchange economies**," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 34(1), pages 157-180, January. - Spear, Stephen E., 1985.
"
**Rational expectations in the overlapping generations model**," Journal of Economic Theory, Elsevier, vol. 35(2), pages 251-275, August. - Kam-Chau Wong & Marcel K. Richter, 1999.
"
**Non-computability of competitive equilibrium**," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 14(1), pages 1-27. - Alessandro Citanna & Paolo Siconolfi, 2008.
"
**On the nonexistence of recursive equilibrium in stochastic OLG economies**," Post-Print hal-00480206, HAL. - Tom Krebs, 2006.
"
**Recursive equilibrium in endogenous growth models with incomplete markets**," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 29(3), pages 505-523, November. - Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995.
"
**Microeconomic Theory**," OUP Catalogue, Oxford University Press, number 9780195102680. - Felix Kubler & Karl Schmedders, 2005.
"
**Approximate versus Exact Equilibria in Dynamic Economies**," Econometrica, Econometric Society, vol. 73(4), pages 1205-1235, July. - Lawrence Blume & David Easley, 2006.
"
**If You're so Smart, why Aren't You Rich? Belief Selection in Complete and Incomplete Markets**," Econometrica, Econometric Society, vol. 74(4), pages 929-966, July.- Lawrence Blume & David Easley, 2001.
"
**If You're So Smart, Why Aren't You Rich? Belief Selection in Complete and Incomplete Markets**," Working Papers 01-06-031, Santa Fe Institute. - Larry Blume & David Easley, 2001.
"
**If You're So Smart, Why Aren't You Rich? Belief Selection in Complete and Incomplete Markets**," Cowles Foundation Discussion Papers 1319, Cowles Foundation for Research in Economics, Yale University.

- Lawrence Blume & David Easley, 2001.
"
- Alvaro Sandroni, 2000.
"
**Do Markets Favor Agents Able to Make Accurate Predicitions?**," Econometrica, Econometric Society, vol. 68(6), pages 1303-1342, November. - Takeoka, Norio, 2006.
"
**Stationary Markov equilibria on a non-compact self-justified set**," Journal of Mathematical Economics, Elsevier, vol. 42(3), pages 269-290, June. - Grandmont, Jean-Michel, 1972.
"
**Continuity properties of a von Neumann-Morgenstern utility**," Journal of Economic Theory, Elsevier, vol. 4(1), pages 45-57, February. - Alessandro Citanna & Paolo Siconolfi, 2008.
"
**On the nonexistence of recursive equilibrium in stochastic OLG economies**," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 37(3), pages 417-437, December. - Jan Tuinstra & Florian Wagener, 2007.
"
**On learning equilibria**," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 30(3), pages 493-513, March.- Tuinstra, J. & Wagener, F.O.O., 2000.
"
**On learning equilibria**," CeNDEF Working Papers 00-12, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance. - Florian Wagener & Jan Tuinstra, 2004.
"
**On Learning Equilibria**," Computing in Economics and Finance 2004 217, Society for Computational Economics. - Tuinstra, J. & Wagener, F.O.O., 2003.
"
**On Learning Equilibria**," CeNDEF Working Papers 03-07, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.

- Tuinstra, J. & Wagener, F.O.O., 2000.
"
- Grandmont, Jean-Michel, 1993.
"
**Temporary general equilibrium theory**," Handbook of Mathematical Economics,in: K. J. Arrow & M.D. Intriligator (ed.), Handbook of Mathematical Economics, edition 4, volume 2, chapter 19, pages 879-922 Elsevier.- Grandmont, Jean-Michel, 1977.
"
**Temporary General Equilibrium Theory**," Econometrica, Econometric Society, vol. 45(3), pages 535-572, April.

- Grandmont, Jean-Michel, 1977.
"
- Lucas, Robert E, Jr, 1978.
"
**Asset Prices in an Exchange Economy**," Econometrica, Econometric Society, vol. 46(6), pages 1429-1445, November. - Beker, Pablo F. & Espino, Emilio, 2011.
"
**The dynamics of efficient asset trading with heterogeneous beliefs**," Journal of Economic Theory, Elsevier, vol. 146(1), pages 189-229, January.- Pablo F Beker & Emilio Espino, 2007.
"
**The Dynamics of Efficient Asset Trading with Heterogeneous Beliefs**," Levine's Bibliography 122247000000001715, UCLA Department of Economics.

- Pablo F Beker & Emilio Espino, 2007.
"
- Felix Kubler, 2001.
"
**Computable general equilibrium with financial markets**," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 18(1), pages 73-96. - Coleman, Wilbur John, II, 1991.
"
**Equilibrium in a Production Economy with an Income Tax**," Econometrica, Econometric Society, vol. 59(4), pages 1091-1104, July.- Wilbur John Coleman, 1989.
"
**Equilibrium in a production economy with an income tax**," International Finance Discussion Papers 366, Board of Governors of the Federal Reserve System (U.S.).

- Wilbur John Coleman, 1989.
"
- Coleman, Wilbur II, 2000.
"
**Uniqueness of an Equilibrium in Infinite-Horizon Economies Subject to Taxes and Externalities**," Journal of Economic Theory, Elsevier, vol. 95(1), pages 71-78, November. - Krebs, Tom, 2004.
"
**Non-existence of recursive equilibria on compact state spaces when markets are incomplete**," Journal of Economic Theory, Elsevier, vol. 115(1), pages 134-150, March.- Tom Krebs, 2002.
"
**Non-Existence of Recursive Equilibria on Compact State Spaces When Markets are Incomplete**," Working Papers 2002-17, Brown University, Department of Economics.

- Tom Krebs, 2002.
"
- Alessandro Citanna & Paolo Siconolfi, 2010.
"
**Recursive Equilibrium in Stochastic Overlapping-Generations Economies**," Econometrica, Econometric Society, vol. 78(1), pages 309-347, January. - Hellwig, Martin F., 1982.
"
**Rational expectations and the Markov property of temporary equilibrium processes**," Journal of Mathematical Economics, Elsevier, vol. 9(1-2), pages 135-144, January. - Jaime McGovern & Olivier Morand & Kevin Reffett, 2013.
"
**Computing minimal state space recursive equilibrium in OLG models with stochastic production**," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(3), pages 623-674, November. - Raad, R., 2012.
"
**Existence of an equilibrium for infinite horizon economies with and without complete information**," Journal of Mathematical Economics, Elsevier, vol. 48(4), pages 247-262. - Radner, Roy, 1972.
"
**Existence of Equilibrium of Plans, Prices, and Price Expectations in a Sequence of Markets**," Econometrica, Econometric Society, vol. 40(2), pages 289-303, March. - Felix Kubler & Herakles Polemarchakis, 2004.
"
**Stationary Markov equilibria for overlapping generations**," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 24(3), pages 623-643, October. - Jordan, J S, 1977.
"
**The Continuity of Optimal Dynamic Decision Rules**," Econometrica, Econometric Society, vol. 45(6), pages 1365-1376, September. - Svensson, Lars E O, 1981.
"
**Efficiency and Speculation in a Model with Price-Contingent Contracts**," Econometrica, Econometric Society, vol. 49(1), pages 131-151, January.

**Full references**(including those not matched with items on IDEAS)

## More about this item

### Keywords

General equilibrium; Recursive equilibrium; Price Perfect Foresight; Market selection hypothesis; Kakutani–Fan–Glicksberg fixed point theorem;### Statistics

Access and download statistics## Corrections

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: *RePEc:spr:joecth:v:61:y:2016:i:1:p:1-54*. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.