Excess demand function around critical prices in incomplete markets
نویسنده
چکیده
We show that the aggregate excess demand function in an economy with incomplete real asset markets can be characterized by Walras’ law, homogeneity, and continuity around critical prices that cause one-dimensional drop of the dimension of the budget set. © 2009 Elsevier B.V. All rights reserved.
منابع مشابه
An Extension of Mantel (1976) to Incomplete Markets
In the incomplete markets model with numeraire asset and a single consumption good we show that, even with homothetic preferences, on compact sets of prices Continuity, Walras’ identity and Homogeneity characterize the properties of market excess demand. This result is proved by an extension of Mantel (1976) to the case of incomplete markets. Journal of Economic Literature Class. No. : D 52, C ...
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تاریخ انتشار 2016