Equilibrium prices when the sunspot variable is continuous.
We analyze sunspot-equilibrium prices in nonconvex economies with perfect markets and a continuous sunspot variable. Our primary result is that every sunspot equilibrium allocation can be supported by prices that, when adjusted for probabilities, are constant across states. This result extends to th...
| Publicado en: | Journal of Economic Theory Vol. 107; no. 1; pp. 11 - 39 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Academic Press Inc.
November 2002
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=513156786&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 513156786 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00220531 RTH jtl: Journal of Economic Theory issn: 00220531 maglogo: N pubinfo: dt: November 2002 vid: 107 iid: 1 pid: 735 pub: Academic Press Inc. artinfo: ui: 513156786 10.1006/jeth.1999.2634 ppf: 11 ppct: 28 formats: tig: atl: Equilibrium prices when the sunspot variable is continuous. aug: au: Garratt, Rod Keister, Todd Qin, Cheng-Zhong su: Prices -- Mathematical models Sunspots (Economics) Convex functions Economics Resource allocation -- Mathematical models sug: subj: Prices -- Mathematical models Sunspots (Economics) Convex functions Economics Resource allocation -- Mathematical models keyword: Convex preferences (Economics) ab: We analyze sunspot-equilibrium prices in nonconvex economies with perfect markets and a continuous sunspot variable. Our primary result is that every sunspot equilibrium allocation can be supported by prices that, when adjusted for probabilities, are constant across states. This result extends to the case of a finite number of equally-probable states under a nonsatiation condition, but does not extend to general discrete state spaces. We use our primary result to establish the equivalence of the set of sunspot equilibrium allocations based on a continuous sunspot variable and the set of lottery equilibrium allocations. Journal of Economic Literature Classification Numbers: D51, D84, E32.|Sc 2001 Elsevier Science (USA) pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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