Cogley, Timothy; Sargent, ThomasJ. - In: Economic Journal 119 (2009) 536, pp. 354-376
We study prices and allocations in a complete-markets, pure-exchange economy in which there are two types of agents with different priors over infinite sequences of the aggregate endowment. Aggregate consumption growth evolves exogenously according to a two-state Markov process. The economy has...