Prices, asset markets and indeterminacy
Article Abstract:
The indeterminacy of competitive equilibrium allocations in incomplete asset markets was established using an aggregate pricing model. Such a condition is particularly prevalent in economies where commodity net trades are constrained, such as nominal assets and deferred payment for commodities. Although price variation among constrained commodities does not influence the value of an individual's net trade, it was found to cast a significant impact on the allocation of expenditure across states.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1998
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A note on heterogeneity, inefficiency, and indeterminacy with Ricardian preferences
Article Abstract:
Research is presented concerning the lack of equivalence of successive generations models featuring finitely lived agents and infinite-horizon models featuring infinitely lived agents.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2001
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