Sequentially complete markets remain incomplete
We reconsider the well-known result of Arrow (1953) that the set of equilibria of an economy with complete markets coincides with the one of an economy with sequentially complete markets. We show by means of two examples that this result is problematic when there exist multiple equilibrium continuations to the initial-period component of an intertemporal equilibrium. Some consequences are drawn.
|Date of creation:||00 Nov 2003|
|Date of revision:|
|Contact details of provider:|| Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)|
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
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.:
- CITANNA, Alessandro & CRES, Herve & DREZE, Jacques & HERINGS, Jean-Jacques & VILLANACCI, Antonio, 2001.
"Continua of underemployment equilibria reflecting coordination failures, also at Walrasian prices,"
Les Cahiers de Recherche
732, HEC Paris.
- Citanna, Alessandro & Cres, Herve & Dreze, Jacques & Herings, P. Jean-Jacques & Villanacci, Antonio, 2001. "Continua of underemployment equilibria reflecting coordination failures, also at Walrasian prices," Journal of Mathematical Economics, Elsevier, vol. 36(3), pages 169-200, December.
- Alessandro Citanna & Hervé Crès & Jacques H. Drèze & Jean-Jacques Herings & Antonio Villanacci, 2001. "Continua of Underemployment Equilibria Reflecting Coordination Failures, Also at Walrasian Prices," Working Papers hal-00597197, HAL.
- Timothy J. Kehoe & David K. Levine, 1982.
"Comparitive Statics and Perfect Foresight in Infinite Horizon Economies,"
UCLA Economics Working Papers
259, UCLA Department of Economics.
- Kehoe, Timothy J & Levine, David K, 1985. "Comparative Statics and Perfect Foresight in Infinite Horizon Economies," Econometrica, Econometric Society, vol. 53(2), pages 433-53, March.
- T. J. Kehoe & D. K. Levine, 1982. "Comparative Statics and Perfect Foresight in Infinite Horizon Economies," Working papers 312, Massachusetts Institute of Technology (MIT), Department of Economics.
- Timothy J Kehoe & David K Levine, 1985. "Comparative Statics and Perfect Foresight in Infinite Horizon Economies," Levine's Working Paper Archive 1873, David K. Levine.
- 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.
- Michael Mandler, 2002. "Classical and Neoclassical Indeterminacy in One-shot Versus Ongoing Equilibria," Metroeconomica, Wiley Blackwell, vol. 53(3), pages 203-222, 08.
- Herings, P. Jean-Jacques, 1998. "On the existence of a continuum of constrained equilibria1," Journal of Mathematical Economics, Elsevier, vol. 30(3), pages 257-273, October.
- John Geanakoplos & Andreu Mas-Colell, 1985.
"Real Indeterminacy with Financial Assets,"
Cowles Foundation Discussion Papers
770R, Cowles Foundation for Research in Economics, Yale University, revised Oct 1985.
- Svensson, Lars E. O., 1976. "Sequences of temporary equilibria, stationary point expectations, and Pareto efficiency," Journal of Economic Theory, Elsevier, vol. 13(2), pages 169-183, October.
- Felix Kubler & Herakles Polemarchakis, 2004. "Stationary Markov equilibria for overlapping generations," Economic Theory, Society for the Advancement of Economic Theory (SAET), vol. 24(3), pages 623-643, October.
- Mandler Michael, 1995. "Sequential Indeterminacy in Production Economies," Journal of Economic Theory, Elsevier, vol. 66(2), pages 406-436, August.
- Balasko, Yves & Cass, David, 1989. "The Structure of Financial Equilibrium with Exogenous Yields: The Case of Incomplete Markets," Econometrica, Econometric Society, vol. 57(1), pages 135-62, January.
- Hellwig, Martin F., 1983. "A note on the implementation of rational expectations equilibria," Economics Letters, Elsevier, vol. 11(1-2), pages 1-8.
- Piero Gottardi & Atsushi Kajii, 1999. "The Structure of Sunspot Equilibria: The Role of Multiplicity," Review of Economic Studies, Oxford University Press, vol. 66(3), pages 713-732.
When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2003085. 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: (Alain GILLIS)
If references are entirely missing, you can add them using this form.