Market demand functions in the capital asset pricing model.
A study was conducted to analyze market demand functions in the Capital Asset Pricing Model (CAPM). Findings indicate that Homogeneity, Walras' Law, and the Tobin Separation Property typify market demand on finite sets of prices. As a result, for any number n, there are CAPM economies that have at...
| Publicado en: | Journal of Economic Theory Vol. 79; no. 2; pp. 192 - 207 |
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| Autores principales: | , , |
| Formato: | Artículo |
| Publicado: |
Academic Press Inc.
April 1998
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | A study was conducted to analyze market demand functions in the Capital Asset Pricing Model (CAPM). Findings indicate that Homogeneity, Walras' Law, and the Tobin Separation Property typify market demand on finite sets of prices. As a result, for any number n, there are CAPM economies that have at least n equilibria and hence have n different beta pricing formulas. Endowment perturbations in these economies cannot reduce the number of equilibria to less than n. |
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