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Prices, Asset Markets and Indeterminacy
POLEMARCHAKIS, Heracles; SICONOLFI, Paolo - Center for Operations Research and Econometrics (CORE), … - 1994
Competitive equilibrium allocations are indeterminate when the net trades in commodities are constrained, while the asset market is incomplete.
Persistent link: https://www.econbiz.de/10005043450
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Money and prices under uncertainty
Nakajima, Tomoyuki; Polemarchakis, Herakles - 2001
remains indeterminacy indexed by an arbitrary probability measure over the set of states of the world. With an interest rate … policy, and only if the asset market is complete, indeterminacy is nominal: it affects prices, but not the allocation of … resources at equilibrium; with a money-supply policy, the indeterminacy is real. Portfolio policy sets the portfolio of assets …
Persistent link: https://www.econbiz.de/10010318888
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Fragility of Competitive Equilibrium with Risk of Default
Bloise, Gaetano; Reichlin, Pietro; Tirelli, Mario - In: Review of Economic Dynamics 16 (2013) 2, pp. 271-295
We study competitive equilibrium in sequential economies under limited commitment. Default induces permanent exclusion from financial markets and endogenously determined solvency constraints prevent debt repudiation. Our analysis shows that such an enforcement mechanism is essentially fragile,...
Persistent link: https://www.econbiz.de/10010604556
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Equilibrium with Incomplete Financial Markets : Uniqueness of Equilibrium Expectations and Real Indeterminacy
PIETRA, Tito; SICONOLFI, Paolo - Center for Operations Research and Econometrics (CORE), … - 1993
period equilibrium prices, can formulate exact forecasts on future equilibrium prices, notwithstanding the real indeterminacy …
Persistent link: https://www.econbiz.de/10005042964
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Indeterminacy of Competitive Equilibrium with Risk of Default
Bloise, Gaetano; Reichlin, Pietro; Tirelli, Mario - C.E.P.R. Discussion Papers - 2009
We prove indeterminacy of competitive equilibrium in sequential economies, where limited commitment requires the …
Persistent link: https://www.econbiz.de/10008566321
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Indeterminacy of competitive equilibrium with risk of default
Bloise, Gaetano; Reichlin, Pietro; Tirelli, Mario - Dipartimento di Economia, Università degli Studi di Roma 3 - 2009
We prove indeterminacy of competitive equilibrium in sequential economies, where limited commitment requires the …
Persistent link: https://www.econbiz.de/10008556616
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Pareto improving price regulation when the asset market is incomplete
Herings, P. J. J.; Polemarchakis, H. - 2001
When the asset market is incomplete, competitive equilibria are constrained suboptimal, and there is scope for Pareto improving interventions. Price regulation, which operates anonymously, on market variables, can be such a Pareto improving policy, even when the welfare effects of rationing are...
Persistent link: https://www.econbiz.de/10010318973
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Equilibrium and arbitrage in incomplete asset markets with fixed prices
Herings, P. J. J.; Polemarchakis, H. - 2001
At arbitrary prices of commodities and assets, fix-price equilibria exist under weak assumptions: endowments need not satisfy an interiority condition, utility functions need only satisfy a very weak monotonicity requirement, and the asset return matrix allows for redundant assets. Prices of...
Persistent link: https://www.econbiz.de/10010318995
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The Taxation of Trades in assets
CITANNA, Alessandro; POLEMARCHAKIS, Heracles M.; TIRELLI, M. - HEC Paris (École des Hautes Études Commerciales) - 2000
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. <p> The policy is anonymous, it economizes on complexity, and it results in ex post Pareto optimal allocations, it is publicly...</p>
Persistent link: https://www.econbiz.de/10005011564
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Generic Existence of Competitive Equilibria when the Asset Market is Incomplete : A Symmetric Argument
POLEMARCHAKIS, Heracles; SICONOLFI, Paolo - Center for Operations Research and Econometrics (CORE), … - 1993
The argument for the generic existence of competitive equilibria when the asset market is incomplete can be formulated with symmetric treatment of all individuals.
Persistent link: https://www.econbiz.de/10005065314