Market Participation and Sunspot Equilibria

S-Tier
Journal: Review of Economic Studies
Year: 1995
Volume: 62
Issue: 3
Pages: 491-512

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

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

Abstract

We investigate the structure of competitive equilibria in an exchange economy parametrized by (i) endowments and (ii) restrictions on market participation. For arbitrary regular endowments, if few consumers are restricted, there are no sunspot equilibria. If endowments are allowed to vary, while restrictions on market participation are fixed, there is a generic set of preferences such that sunspot equilibria exist for a non-empty subset of endowments. Our analysis extends to the general case of an arbitrary number of restricted consumers the results of Cass and Shell for the polar cases in which either (i) no consumers are restricted or (ii) all consumers are restricted.

Technical Details

RePEc Handle
repec:oup:restud:v:62:y:1995:i:3:p:491-512.
Journal Field
General
Author Count
3
Added to Database
2026-01-24