Incomplete markets in infinite horizon: debt constraints versus node prices

Pascal Gourdel and Monique Florenzano

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: The general equilibrium model with incomplete markets is here extended to infinite horizon economies populated. by a finite number of infinitely-lived agents. The crucial issue which divides the infinite horizon setting from the finite horizon setting is in the nature of borrowing constaints which added to spot constraints define a plausible budget set for individual agents. The paper relates seyen altemative definitions of equilibrium and states corresponding equilibrium existence theorems when assets are one-period and purely financial.

Keywords: Stochastic; equilibrium; Incomplete; markets; Infinite; horizon; Purely; financial; One-period; securities; No-arbitrage; asset; pricing (search for similar items in EconPapers)
Date: 1995-03
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Incomplete Markets in Infinite Horizon: Debt Constraints Versus Node Prices (1994)
Working Paper: Incomplete markets in infinite horizon: debt constraints versus node prices (1993)
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Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:3904

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