Pareto Improving Price Regulation When the Asset Market is Incomplete

P. Jean-Jacques Herings and H. M. Polemarchakis
Additional contact information
H. M. Polemarchakis: Brown University

No 03-20, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: Incomplete asset markets cause competitive equilibria to be constrained suboptimal and provides scope for Pareto improving interventions. In this paper, we examine how intervention in prices in asset or spot commodity markets serve this purpose. We show that, if ?x-price equilibria behave sufficiently regularly near Walrasian equilibria, Pareto improving price regulation is generically possible. An advantage of price regulation, contrasted with interventions in individuals’ asset portfolios, is that it operates anonymously, on market variables.

Keywords: incomplete asset market; ?x-price equilibria; Pareto improvement (search for similar items in EconPapers)
JEL-codes: D45 D52 D60 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2003-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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http://www.econ.ku.dk/english/research/publications/wp/2003/0320.pdf/ (application/pdf)

Related works:
Chapter: Pareto Improving Price Regulation when the Asset Market is Incomplete (2006)
Journal Article: Pareto improving price regulation when the asset market is incomplete (2005)
Working Paper: Pareto Improving Price Regulation when the Asset Market Is Incomplete (2003)
Working Paper: Pareto improving price regulation when the asset market is incomplete (2000)
Working Paper: Pareto Improving Price Regulation When the Asset Market is Incomplete (2000)
Working Paper: Pareto improving price regulation when the asset market is incomplete (2000)
Working Paper: Pareto Improving Price Regulation When the Asset Market Is Incomplete (1999)
Working Paper: Pareto Improving Price Regulation when the Asset Market is Incomplete (1999)
Working Paper: Pareto Improving Price Regulation when the Asset Market is Incomplete (1999)
Working Paper: Pareto improving price regulation when the asset market is incomplete (1998)
Working Paper: Pareto Improving Price Regulation When the Asset Market is Incomplete (1998)
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