EQUILIBRIUM INDETERMINACY IN A MODEL OF CONSTRAINED FINANCIAL MARKETS

B-Tier
Journal: International Economic Review
Year: 2016
Volume: 57
Issue: 3
Pages: 857-880

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

I present a general equilibrium model with incomplete markets in which assets pay in units of a numéraire good. In this economy, agents are constrained to negotiate the same amount of assets in different states of the world. Different from the standard result of economies with real assets, equilibrium indeterminacy can arise, depending on the structure of the financial markets. Equilibrium fails to be unique when it is not possible to transfer wealth between states in which consumers trade a pair of assets that face the same restriction.

Technical Details

RePEc Handle
repec:wly:iecrev:v:57:y:2016:i:3:p:857-880
Journal Field
General
Author Count
1
Added to Database
2026-01-25