# Indeterminacy in general equilibrium economies with incomplete financial markets: mixed asset returns

Article Abstract:

The structure of the set of equilibrium allocations in a two-period, pure exchange economy with incomplete financial markets is analyzed. The parameters of economies are defined by asset returns, which are affine functions of spot commodity prices, and endowments. A smooth N-dimensional manifold can be defined in the set of equilibrium allocations of an open, dense set of economies if there are more than (N - M) consumers and (N - M)M > or = N, for N second period spots and M number of assets.

Publication Name: The Journal of Mathematical Economics

Subject: Mathematics

ISSN: 0304-4068

Year: 1992

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# Walras' Law and nonoptimal equilibria in overlapping generations models

Article Abstract:

The link between Walrus Law and the general equilibrium is presented. In particular, the failure of the economic theory is analyzed in relation to the existence of nonoptimal equilibrium. The conclusion derived states that the nonoptimality of a Pareto competitive equilibrium within a pure exchange model of overlapping generations arises exclusively from the inability of Walrus' Law to work.

Publication Name: The Journal of Mathematical Economics

Subject: Mathematics

ISSN: 0304-4068

Year: 1992

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