The endogeneity of preferences implies that not only individual preferences -along with technologies, government policies, and the organization of society and markets- determine economic outcomes, but also that the economic, social, legal, and cultural structure of society affects preferences....

Individuals exchange contracts for the delivery of commodities in competitive markets and, simultaneously, act strategically; actions affect utilities across individuals directly or through the payoffs of contracts. This encompasses economies with asymmetric information, Nash-Walras equilibria...

Extrinsic uncertainty is effective at a competitive equilibrium. This is generic if spot markets are inoperative: the only objects of exchange are assets for the contingent delivery of commodities; and the asset market is incomplete. The structure of payoffs of assets may allow for non-trivial...

We investigate an overlapping generations monetary economy in which agents'expectations depend upon backward looking predictors of the future price level.

We consider a Lucas asset-pricing model with heterogeneous agents, exogenous labor income, and a finite number of exogenous shocks. Although agents are infinitely lived, endowments and dividends are time-invariant functions of the exogenous shock alone and are thus restricted to lie in a...

We consider a general equilibrium model with incomplete financial markets and nominal assets. Asset prices are given. Let D be the number of "missing" assets. If the number of agents is greater than 2(D+ 1) and the number of period zero commodities greater than (2D + 1), there is a dense,...

Individuals exchange contracts for the deliveryof commodities in competitive markets and, simultaneously, act strategically; actions affect utilities across individuals directlyor through the payoffs of contracts. This encompasses economies with asymmetric information. Nash-Walras equilibria...

It is well known that a competititve equilibrium may fail to exist when preferences are possibly satiated. We show that this non-existence problem does not arise if one of the commodities is paper money. Moreover, an equilibrium is Pareto efficient in the economy with money. This paper therefore...