Temporary financial equilibrium

Yves Balasko

Economic Theory, 2003, vol. 21, issue 1, 18 pages

Abstract: In a two-period pure exchange economy with financial assets, a temporary financial equilibrium is an equilibrium of the current spot and security markets given forecast functions of future prices and payoffs. The temporary equilibrium model can then be interpreted as an Arrow-Debreu economy where preferences depend on prices. This identification implies, among other consequences, the existence and the generic determinateness of the financial temporary equilibria associated with given forecast functions. Copyright Springer-Verlag Berlin Heidelberg 2003

Keywords: Keywords and Phrases: Temporary equilibrium; Financial equilibrium; Asset pricing.; JEL Classification Numbers: D51; D52; D84; G12. (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s00199-002-0256-0

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