Recent work on general equilibrium models with incomplete financial markets has demonstrated that when assets pay off in units of account, equilibrium prices and allocations are indeterminate. The equilibria in such models are also generically constrained suboptimal. A central planner can...

Sunspot equilibrium and lottery equilibrium are two stochastic solution concepts for nonstochastic economies. We compare these concepts in a class of completely finite, (possibly) nonconvex exchange economies with perfect markets, which requires extending the lottery model to the finite case....