IDEAS home Printed from https://ideas.repec.org/p/mse/cesdoc/17056.html
   My bibliography  Save this paper

Financial equilibrium with differential information in a production economy: A basic model of 'generic' existence

Author

Listed:

Abstract

We study the existence of equilibria in two-period production economies, where asymmetrically informed agents exchange securities, on incomplete financial markets, and commodities, on spot markets with a perfect foresight of future prices. Extending our pure-exchange existence theorems, we show that equilibria exist for an open dense set of economies, parametrized by the assets' payoffs, and for all economies, whose assets are nominal or numeraire. The model covers all types of private ownership - sole proprietorship, partnership or corporations - and all sectors consistent with competition, i.e., with non-increasing returns to scale. It is a step towards proving existence in stochastic production economies, and the full existence of sequential equilibria with production, when perfect price foresight fails to prevail

Suggested Citation

  • Lionel de Boisdeffre, 2017. "Financial equilibrium with differential information in a production economy: A basic model of 'generic' existence," Documents de travail du Centre d'Economie de la Sorbonne 17056, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    • Handle: RePEc:mse:cesdoc:17056
    as

    Download full text from publisher

    File URL: ftp://mse.univ-paris1.fr/pub/mse/CES2017/17056.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    sequential equilibrium; production economies; perfect foresight; existence; rational expectations; fiancial markets; asymmetric information; arbitrage;
    All these keywords.

    JEL classification:

    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mse:cesdoc:17056. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lucie Label (email available below). General contact details of provider: https://edirc.repec.org/data/cenp1fr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.