A General Equilibrium Corporate Finance Theorem for Incomplete Markets: A Special Case

Pascal Stiefenhofer

Discussion Papers from Department of Economics, University of York

Abstract: This paper considers corporate equilibria in a two period endogenized asset general equilibrium model for a class of profit maximizing objective functions of the firms introduced in Stiefenhofer (2009). It shows by means of a particular case that for a fixed financial policy, every extensive form stock market equilibrium can be translated into a reduced form equilibrium. This suggests determinateness of corporate equilibria for varying financial parameters. A change in the firm's financial policy changes the production set available to it in the next period, hence real effects.

Date: 2010-06
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.york.ac.uk/media/economics/documents/discussionpapers/2010/1011.pdf Main text (application/pdf)

Related works:
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:yor:yorken:10/11

Access Statistics for this paper

More papers in Discussion Papers from Department of Economics, University of York Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom. Contact information at EDIRC.
Bibliographic data for series maintained by Paul Hodgson ().