Introduction to Sunspots and Lotteries

Edward C. Prescott and Karl Shell ()

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
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http://www.arts.cornell.edu/econ/CAE/psjetintro200208241.pdf

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Journal Article: Introduction to Sunspots and Lotteries (2002)
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Persistent link: http://EconPapers.repec.org/RePEc:ecl:corcae:02-08

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