Title: The Existence of Competitive Equilibria when the Asset Market is Incomplete: A Short Proof and Further Results
Abstract: When the asset market is incomplete, and assets are traded at an initial contracting period, competitive equilibria may fail to exist. This may occur in a robust economy with asset payoffs denominated in a numeraire commodity. Restrictions on the asset structure guarantee the existence of competitive equilibria; consumption during the contracting period can be interpreted as such a restriction. When asset payoffs are denominated in multiple commodities, competitive equilibria exist generically.
Publication Year: 1989
Publication Date: 1989-08-01
Language: en
Type: preprint
Access and Citation
Cited By Count: 1
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot