On the equivalence of financial structures with long-term assets

Jean-Marc Bonnisseau and Achis Chery ()
Additional contact information
Achis Chery: Centre d'Economie de la Sorbonne et CREGED - Université de Quisqueya, http://achis.chery.free.fr

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: In a stochastic financial exchange economy, two financial structures are equivalent if, for each given state price, regardless the associated arbitrage free price, the marketable payoffs are identical. The key property of two equivalent financial structures is that, when associated with any standard exchange economy, they lead to the same financial equilibrium. We exhibit a sufficient condition for the equivalence of two financial structures with possibly long-term assets. We then apply this result to financial structures built upon primitive assets and their re-trading to get a necessary and sufficient condition. We also borrow an assumption from [7] to prove the equivalence between a financial structure and its reduced forms and between to complete financial structures

Keywords: Equivalent financial structures; financial equilibrium; multi-period model; long-term assets; financial sub-structure; reduced forms (search for similar items in EconPapers)
JEL-codes: D4 D5 G1 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2014-11
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
ftp://mse.univ-paris1.fr/pub/mse/CES2014/14081.pdf (application/pdf)

Related works:
Working Paper: On the equivalence of financial structures with long-term assets (2017)
Working Paper: On the equivalence of financial structures with long-term assets (2017)
Working Paper: On the equivalence of financial structures with long-term assets (2017)
Working Paper: On the equivalence of financial structures with long-term assets (2014)
Working Paper: On the equivalence of financial structures with long-term assets (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:14081

Access Statistics for this paper

More papers in Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne Contact information at EDIRC.
Bibliographic data for series maintained by Lucie Label ().