Jiménez-Martínez, Antonio - Centro de Investigación y Docencia Económicas (CIDE) - 2009
J. D. Geanakoplos and H. M. Polemarchakis (1986) prove the generic constrained suboptimality of equilibrium allocations in two period economies with incomplete markets. In these notes we provide a complete and detailed version of their proof with alternative arguments when needed.