When the asset market is incomplete, equilibrium allocations are not invariant to changes in the financial policies of firms: in the presence of secondary assets, such as options, whose payoffs depend nonlinearly on the price of equity, the range of attainable reallocations of revenue varies as...

The objective of this paper is to study the stationary monetary equilibria in a stochastic overlapping generations model with a general incomplete asset structure. It is proved that a stationary equilibrium with a non zero price of money generically exists and is locally isolated when there is...

In this Paper we propose a concept of stability for intertemporal equilibria with rational expectations: current period prices move proportionally to current period excess demand while future prices are formed according to the perfect foresight hypothesis. It is shown that this process is...

We demonstrate that in a CAPM economy Walras Law and the Tobin Separation Property characterize market demand in finite sets of prices. Consequently, for any number n there exist CAPM economies which have at least n equilibria and hence have n different beta pricing fomulas. It is shown that the...

Since Debreu (1974) and the strengthenings of this result by Kirman-Koch (1986), Mantel (1976) and Hildenbrand (1989 b), it is known that in general in the Arrow-Debreu Model of General Equilibrium, the market excess demand function does not obey any structure which leads to an unique or...

This paper is aimed at characterizing excess demand functions around a non critical spot price system in a two period exchange economy with incomplete markets and real assets.