Introduction to Sunspots and Lotteries

Edward Prescott and Karl Shell (karl.shell@cornell.edu)

Working Papers from Cornell University, Center for Analytic Economics

Abstract: This introduces the symposium on sunspots and lotteries. Two stochastic general equilibrium concepts, Sunspot Equilibrium (SE) and Lottery Equilibrium (LE), are compared. It is shown that, for some general, pure-exchange economies which allow for consumption non-convexities or moral hazards, the set of LE allocations is equivalent to the set of SE allocations provided that the randomizing device can generate events of any probability.

JEL-codes: D51 D82 D84 E32 (search for similar items in EconPapers)
Date: 2002-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://cae.economics.cornell.edu/psjetintro200208241.pdf

Related works:
Journal Article: Introduction to Sunspots and Lotteries (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:corcae:02-08

Access Statistics for this paper

More papers in Working Papers from Cornell University, Center for Analytic Economics Contact information at EDIRC.
Bibliographic data for series maintained by (workingpapers@econlit.org).