Introduction to Sunspots and Lotteries
Edward 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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Citations: View citations in EconPapers (7)
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https://cae.economics.cornell.edu/psjetintro200208241.pdf
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Journal Article: Introduction to Sunspots and Lotteries (2002) 
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Persistent link: https://EconPapers.repec.org/RePEc:ecl:corcae:02-08
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