Introduction to sunspots and lotteries.

This introduces the symposium on sunspots and lotteries. Two stochastic general-equilibrium concepts, sunspot equilibrium (SE) and lottery equilibrium (LE), are compared. It is shown that, for some general, pure-exchange economies which allow for consumption nonconvexities or moral hazards, the set...

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Detalles Bibliográficos
Publicado en:Journal of Economic Theory Vol. 107; no. 1; pp. 1 - 11
Autores principales: Prescott, Edward C., Shell, Karl
Formato: Symposium
Publicado: Academic Press Inc. November 2002
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:This introduces the symposium on sunspots and lotteries. Two stochastic general-equilibrium concepts, sunspot equilibrium (SE) and lottery equilibrium (LE), are compared. It is shown that, for some general, pure-exchange economies which allow for consumption nonconvexities or moral hazards, the set of LE allocations is equivalent to the set of SE allocations provided that the randomizing device can generate events of any probability. Journal of Economic Literature Classification Numbers: D51, D82, D84, E32. |Sc 2002 Elsevier Science (USA)