Aggregation, efficiency and mutual fund separation in incomplete markets

B-Tier
Journal: Economic Theory
Year: 1998
Volume: 11
Issue: 2
Pages: 443-455

Authors (2)

JÊrÆme B. Detemple (not in RePEc) Piero Gottardi (University of Essex)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

This paper studies the conditions for aggregation, portfolio separation and effective completeness of competitive allocations in general equilibrium models with incomplete markets where agents have general preference and endowment distributions. We show that these properties are distinct. Demands may aggregate yet may fail to exhibit fund separation and conversely. Fund separation implies effective completeness while aggregation does not. The implications of these properties for the structure of equilibria are discussed, and generalizations of the CAPM, the consumption CAPM and the CAPM with nonmarketed wealth emerge from the analysis.

Technical Details

RePEc Handle
repec:spr:joecth:v:11:y:1998:i:2:p:443-455
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25