Indeterminacy in Incomplete Market Economies.

B-Tier
Journal: Economic Theory
Year: 1991
Volume: 1
Issue: 1
Pages: 45-61

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

It is shown that in a two-period economy with a continuum of states and real assets, the following holds: (1) if the asset structure is complete, then equilibria is finite; (2) if there are a finite number of real assets (this can approximate completeness arbitrarily close) then, for a non-empty open set of economies, there are a continuum of distinct equilibria. Asymptotic versions (on the number of states and on the number of assets) of the result are also given. It is argued, therefore, that incompleteness, by itself, may be a leading source of indeterminacy.

Technical Details

RePEc Handle
repec:spr:joecth:v:1:y:1991:i:1:p:45-61
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25