TY - JOUR

T1 - The degree of indeterminacy of equilibria with incomplete markets

AU - Nagata, Ryo

PY - 1998/1

Y1 - 1998/1

N2 - This paper investigates generically the indeterminacy property of a financial equilibrium set with incomplete nominal asset markets in both endowments and utility functions. A permissible utility function is not required to have any convexity, so that the resulting equilibrium set is intuitively expected to become very large. It is, however, proved that generically the degree of indeterminacy of equilibria does not exceed the deficiency in financial asset markets. It is also demonstrated that there is a functional relationship between financial equilibria and an economy parameter.

AB - This paper investigates generically the indeterminacy property of a financial equilibrium set with incomplete nominal asset markets in both endowments and utility functions. A permissible utility function is not required to have any convexity, so that the resulting equilibrium set is intuitively expected to become very large. It is, however, proved that generically the degree of indeterminacy of equilibria does not exceed the deficiency in financial asset markets. It is also demonstrated that there is a functional relationship between financial equilibria and an economy parameter.

KW - Deficiency in asset markets

KW - Extended financial equilibrium

KW - Indeterminacy of equilibria

KW - Nominal assets

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M3 - Article

AN - SCOPUS:0031627571

SN - 0304-4068

VL - 29

SP - 109

EP - 123

JO - Journal of Mathematical Economics

JF - Journal of Mathematical Economics

IS - 1

ER -