# Consumption Dynamics in General Equilibrium : A Characterisation when Markets are Incomplete

## Author

## Abstract

## Suggested Citation

**Consumption Dynamics in General Equilibrium : A Characterisation when Markets are Incomplete**," The Warwick Economics Research Paper Series (TWERPS) 921, University of Warwick, Department of Economics.

*RePEc:wrk:warwec:921*

## Download full text from publisher

## Other versions of this item:

- Beker, Pablo & Chattopadhyay, Subir, 2010.
"
**Consumption dynamics in general equilibrium: A characterisation when markets are incomplete**," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2133-2185, November.

## References listed on IDEAS

- Constantinides, George M & Duffie, Darrell, 1996.
"
**Asset Pricing with Heterogeneous Consumers**," Journal of Political Economy, University of Chicago Press, vol. 104(2), pages 219-240, April. - Duffie, Darrell, et al, 1994.
"
**Stationary Markov Equilibria**," Econometrica, Econometric Society, vol. 62(4), pages 745-781, July. - Kubler, Felix & Schmedders, Karl, 2002.
"
**Recursive Equilibria In Economies With Incomplete Markets**," Macroeconomic Dynamics, Cambridge University Press, vol. 6(02), pages 284-306, April. - Manuel S. Santos & Michael Woodford, 1997.
"
**Rational Asset Pricing Bubbles**," Econometrica, Econometric Society, vol. 65(1), pages 19-58, January.- Manuel S. Santos & Michael Woodford, 1993.
"
**Rational Asset Pricing Bubbles**," Working Papers 9304, Centro de Investigacion Economica, ITAM. - Santos, Manuel S. & Woodford, Michael, 1995.
"
**Rational asset pricing bubbles**," UC3M Working papers. Economics 3913, Universidad Carlos III de Madrid. Departamento de Economía.

- Manuel S. Santos & Michael Woodford, 1993.
"
- Becker, Robert & Zilcha, Itzhak, 1997.
"
**Stationary Ramsey Equilibria under Uncertainty**," Journal of Economic Theory, Elsevier, vol. 75(1), pages 122-140, July. - 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.
"
- Gary Chamberlain & Charles A. Wilson, 2000.
"
**Optimal Intertemporal Consumption Under Uncertainty**," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(3), pages 365-395, July. - David K. Levine & William R. Zame, 2002.
"
**Does Market Incompleteness Matter?**," Econometrica, Econometric Society, vol. 70(5), pages 1805-1839, September.- David K. Levine & William Zame, 2001.
"
**Does Market Incompleteness Matter**," Levine's Working Paper Archive 78, David K. Levine.

- David K. Levine & William Zame, 2001.
"
- Lars Ljungqvist & Thomas J. Sargent, 2004.
"
**Recursive Macroeconomic Theory, 2nd Edition**," MIT Press Books, The MIT Press, edition 2, volume 1, number 026212274x, March. - Armen A. Alchian, 1950.
"
**Uncertainty, Evolution, and Economic Theory**," Journal of Political Economy, University of Chicago Press, vol. 58, pages 211-211. - Levine, David K. & Zame, William R., 1996.
"
**Debt constraints and equilibrium in infinite horizon economies with incomplete markets**," Journal of Mathematical Economics, Elsevier, vol. 26(1), pages 103-131.- David K. Levine & William R. Zame, 1992.
"
**Debt Constraints and Equilibrium in Infinite Horizon Economies with Incomplete Markets**," UCLA Economics Working Papers 666, UCLA Department of Economics. - David K. Levine & William R. Zame, 1993.
"
**Debt Constraints and Equilibrium in Infinite Horizon Economies with Incomplete Markets**," UCLA Economics Working Papers 703, UCLA Department of Economics. - David K. Levine & William Zame, 1996.
"
**Debt Constraints and Equilibrium in Infinite Horizon Economies with Incomplete Markets**," Levine's Working Paper Archive 1954, David K. Levine.

- David K. Levine & William R. Zame, 1992.
"
- Krebs, Tom, 2004.
"
**Testable implications of consumption-based asset pricing models with incomplete markets**," Journal of Mathematical Economics, Elsevier, vol. 40(1-2), pages 191-206, February. - Matthew O. Jackson & Ehud Kalai & Rann Smorodinsky, 1999.
"
**Bayesian Representation of Stochastic Processes under Learning: de Finetti Revisited**," Econometrica, Econometric Society, vol. 67(4), pages 875-894, July.- Matthew O. Jackson & Ehud Kalai & Rann Smorodinsky, 1998.
"
**Bayesian Representation of Stochastic Processes under Learning: de Finetti Revisited**," Discussion Papers 1228, Northwestern University, Center for Mathematical Studies in Economics and Management Science.

- Matthew O. Jackson & Ehud Kalai & Rann Smorodinsky, 1998.
"
- 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.
"
- Sandroni, Alvaro, 2005.
"
**Market selection when markets are incomplete**," Journal of Mathematical Economics, Elsevier, vol. 41(1-2), pages 91-104, February. - Phillips, Peter C B & Ploberger, Werner, 1996.
"
**An Asymptotic Theory of Bayesian Inference for Time Series**," Econometrica, Econometric Society, vol. 64(2), pages 381-412, March. - Bewley, Truman, 1982.
"
**An integration of equilibrium theory and turnpike theory**," Journal of Mathematical Economics, Elsevier, vol. 10(2-3), pages 233-267, September. - 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.
"
- Rader, Trout, 1981.
"
**Utility over time: The homothetic case**," Journal of Economic Theory, Elsevier, vol. 25(2), pages 219-236, October. - Becker, Robert A. & Foias, Ciprian, 1987.
"
**A characterization of Ramsey equilibrium**," Journal of Economic Theory, Elsevier, vol. 41(1), pages 173-184, February. - 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.
"
- Truman Bewley, 2010.
"
**An Integration of Equilibrium Theory and Turnpike Theory**," Levine's Working Paper Archive 1381, David K. Levine. - Robert A. Becker, 1980.
"
**On the Long-Run Steady State in a Simple Dynamic Model of Equilibrium with Heterogeneous Households**," The Quarterly Journal of Economics, Oxford University Press, vol. 95(2), pages 375-382.

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

## Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
**Cited by:**

- Timothy Cogley & Thomas J. Sargent & Viktor Tsyrennikov, 2014.
"
**Wealth Dynamics in a Bond Economy with Heterogeneous Beliefs**," Economic Journal, Royal Economic Society, vol. 124(575), pages 1-30, March.- Viktor Tsyrennikov & Thomas Sargent & Timothy Cogley, 2012.
"
**Wealth Dynamics in a Bond Economy with Heterogeneous Beliefs**," 2012 Meeting Papers 1079, Society for Economic Dynamics. - Timothy Cogley & Thomas J. Sargent & Viktor Tsyrennikov, 2013.
"
**Wealth Dynamics in a Bond Economy with Heterogeneous Beliefs**," Working Papers 2013-23, Economic Research Institute, Bank of Korea.

- Viktor Tsyrennikov & Thomas Sargent & Timothy Cogley, 2012.
"
- 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.
"
- Pietro Dindo & Filippo Massari, 2017.
"
**The Wisdom of the Crowd in Dynamic Economies**," Working Papers 2017:17, Department of Economics, University of Venice "Ca' Foscari". - Hervé Crès & Tobias Markeprand & Mich Tvede, 2016.
"
**Incomplete financial markets and jumps in asset prices**," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 62(1), pages 201-219, June.- Hervé Crès & Tobias Markeprand & Mich Tvede, 2009.
"
**Incomplete Financial Markets and Jumps in Asset Prices**," Discussion Papers 09-12, University of Copenhagen. Department of Economics.

- Hervé Crès & Tobias Markeprand & Mich Tvede, 2009.
"
- Kogan, Leonid & Ross, Stephen A. & Wang, Jiang & Westerfield, Mark M., 2017.
"
**Market selection**," Journal of Economic Theory, Elsevier, vol. 168(C), pages 209-236.- Leonid Kogan & Stephen Ross & Jiang Wang & Mark M. Westerfield, 2009.
"
**Market Selection**," NBER Working Papers 15189, National Bureau of Economic Research, Inc. - Stephen Ross & Mark Westerfield & Jiang Wang & Leonid Kogan, 2009.
"
**Market Selection**," 2009 Meeting Papers 274, Society for Economic Dynamics.

- Leonid Kogan & Stephen Ross & Jiang Wang & Mark M. Westerfield, 2009.
"
- Guerdjikova, Ani & Sciubba, Emanuela, 2015.
"
**Survival with ambiguity**," Journal of Economic Theory, Elsevier, vol. 155(C), pages 50-94.- Ani Guerdijkova & Emanuela Sciubba, 2012.
"
**Survival with Ambiguity**," Birkbeck Working Papers in Economics and Finance 1216, Birkbeck, Department of Economics, Mathematics & Statistics.

- Ani Guerdijkova & Emanuela Sciubba, 2012.
"
- Giulio Bottazzi & Pietro Dindo & Daniele Giachini, 2018.
"
**Momentum and Reversal in Financial Markets with Persistent Heterogeneity**," LEM Papers Series 2018/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.- Giulio Bottazzi & Pietro Dindo & Daniele Giachini, 2018.
"
**Momentum and Reversal in Financial Markets with Persistent Heterogeneity**," Working Papers 2018:03, Department of Economics, University of Venice "Ca' Foscari".

- Giulio Bottazzi & Pietro Dindo & Daniele Giachini, 2018.
"
- Pietro Dindo, 2015.
"
**Survival in Speculative Markets**," LEM Papers Series 2015/32, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. - Braido, Luis H. B., 2013.
"
**Ergodic Markov equilibrium with incomplete markets and short sales**," Theoretical Economics, Econometric Society, vol. 8(1), January. - Giulio Bottazzi & Pietro Dindo & Daniele Giachini, 2015.
"
**Long-run Heterogeneity in an Exchange Economy with Fixed-Mix Traders**," LEM Papers Series 2015/29, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. - Blume, Lawrence & Easley, David, 2009.
"
**The market organism: Long-run survival in markets with heterogeneous traders**," Journal of Economic Dynamics and Control, Elsevier, vol. 33(5), pages 1023-1035, May. - Dan Vu Cao, 2010.
"
**Collateral Shortages, Asset Price And Investment Volatility With Heterogeneous Beliefs**," 2010 Meeting Papers 1233, Society for Economic Dynamics.- Dan Cao, 2011.
"
**Collateral Shortages, Asset Price and Investment Volatility with Heterogeneous Beliefs**," Working Papers gueconwpa~11-11-01, Georgetown University, Department of Economics.

- Dan Cao, 2011.
"
- Matthew Hoelle & M. Udara Peiris, 2013.
"
**On the Efficiency of Nominal GDP Targeting in a Large Open Economy**," Purdue University Economics Working Papers 1273, Purdue University, Department of Economics.

## More about this item

### JEL classification:

**D52**- Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets**D61**- Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

### NEP fields

This paper has been announced in the following NEP Reports:- NEP-ALL-2009-12-05 (All new papers)
- NEP-BEC-2009-12-05 (Business Economics)
- NEP-CTA-2009-12-05 (Contract Theory & Applications)
- NEP-DGE-2009-12-05 (Dynamic General Equilibrium)

### 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:wrk:warwec:921*. 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: (Margaret Nash). General contact details of provider: http://edirc.repec.org/data/dewaruk.html .

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.