HAMMOND, P.J. - In: Rivista Internazionale di Scienze Sociali 115 (2007) 2, pp. 161-185
In an intertemporal Arrow-Debreu economy with a continuum of agents, suppose that the auctioneer sets prices while the government institutes optimal lump-sum transfers period by period. An earlier paper showed how subgame imperfections arise because agents understand how their current decisions...