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Excess demand functions when new assets are introduced

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  • Momi, Takeshi

Abstract

We demonstrate that information on the aggregate excess demand function of an incomplete real asset market economy is not helpful toward predicting the equilibrium of a new economy to which unredundant assets are added. An innovation of assets can completely change the aggregate excess demand functions.

Suggested Citation

  • Momi, Takeshi, 2009. "Excess demand functions when new assets are introduced," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1832-1843, July.
    • Handle: RePEc:eee:jetheo:v:144:y:2009:i:4:p:1832-1843
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    References listed on IDEAS

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