Computing equilibria when asset markets are incomplete.

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. We show that this discontinuity disappears if we allow an agent in the economy to introduce a...

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Bibliographic Details

Published in:	Econometrica Vol. 64; pp. 1 - 28
Main Authors:	Brown, Donald J., DeMarzo, Peter M., Eaves, B. Curtis
Format:	Article
Published:	Wiley-Blackwell January 1996
Subjects:	Economic equilibrium Assets (Accounting) Pricing Algorithms
Online Access:	View this record in EBSCOhost