Effectively complete equilibria - a note

Article Abstract:

A study has been conducted to investigate the equilibrium of an economy with an incomplete markets structure whose allocation happens to be Pareto optimal and whose prices happen to support Walresian equilibrium of the corresponding markets economy. Fixed endowments must be considered when assessing a Pareto optimal equilibrium allocation of an incomplete markets economy. It has been revealed that if no agent is consuming in the interior of his consumption set, then it may be possible to an incomplete markets equilibrium allocation to be Pareto optimal and yet not be the allocation of Walrasian equilibrium when markets are complete.

Economic Views, Analysis, Economic policy, Equilibrium (Economics), Walrasian model, Optimal stopping (Mathematical statistics)

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Pricing issues with investment flows: applications to market models with frictions

Article Abstract:

Research into the theory of asset pricing has involved using a model in which any investment opportunity is characterized in terms of cash flows. It was found that the absence of free lunch in the context with flows is the same as the existence of a discount process with the 'net present value' of any investment opportunity being nonpositive.

Asset Accounting

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Partially revealing rational expectations equilibria with nominal assets

Article Abstract:

Issues concerning the characteristics of the static exchange economy are discussed. Particular attention is given to economies with finite state spaces and nominal assets, as well as to ways of embedding price information in the equilibrium of rational expectations.

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