When the asset market is incomplete, there typically exist taxes on trades in assets and a redistribution of revenue in the asset market that are Pareto improving. The policy is anonymous, it economizes on complexity, and it results in ex post Pareto optimal allocations; it is publicly announced...

When the asset market is incomplete,there typically exist taxes on trades in assets and a redistribution of revenue in the asset market that are Pareto improving. The policy is anonymous,it economizes on complexity,and it re- sults in ex post Pareto optimal allocations ; it is publicly announced...

We prove generic existence of recursive equilibrium for overlapping generations economies with uncertainty. The result holds provided there is sufficient intragenerational household heterogeneity.

These four essays address issues related to the incompleteness of financial markets in competitive exchange economies. The main point we try to establish is that when markets are incomplete, a wide range of economic policies have an impact on equilibrium allocations and therefore on the welfare...

In a three-period finite competitive exchange economy with incomplete financial markets and retrading, we study the possibility of controlling asset price volatility through financial innovation. We first give sufficient conditions on preferences and endowments implying that whatever is the...