Levine, David K.; Zame, William R. - In: Econometrica 70 (2002) 5, pp. 1805-1839
This paper argues that incompleteness of intertemporal financial markets has little effect (on welfare, prices, or consumption) in an economy with a single consumption good, provided that traders are long-lived and patient, a riskless bond is traded, shocks are transitory, and there is no...