haku: @author Brown, D. / yhteensä: 28
viite: 12 / 28
| Tekijä: | Brown, D. DeMarzo, P. Eaves, B. |
| Otsikko: | Computing equilibria when asset markets are incomplete |
| Lehti: | Econometrica
1996 : JAN, VOL. 64:1, p. 1-27 |
| Asiasana: | ECONOMETRICS ASSETS MARKETS |
| Kieli: | eng |
| Tiivistelmä: | Existence of equilibrium with incomplete markets is problematic because demand functions are typically not continuous. Discontinuities occur at prices for which a marketed asset suddenly becomes redundant. The authors show that this discontinuity disappears if we allow an agent in the economy to introduce a new asset when such redundancies occur. This enables us to prove existence with incomplete markets using a standard path-following argument. Hence, available algorithms for path-following in Rk can be applied to compute equilibria in the GEI case. |
SCIMA