Jimenez-Martínez, Antonio - In: Estudios Económicos 22 (2007) 1, pp. 111-136
J. D. Geanakoplos and H. M. Polemarchakis (1986) prove the generic constrained suboptimality of equilibrium allocations in two period economies with incomplete markets. They perturb asset prices at equilibrium when the degree of market incompleteness equals one. Since prices do not parameterize...