Characterization, Computation, and Multiplicity of Intertemporal Economics Equilibria

The goal of this research is to analyze the equilibria of economies in which time and uncertainty play important roles. A new class of economies with limited insurance possibilities is proposed. In these economies, the operation of asset markets is subject only to endogenous constraints on the level of debt consumers can accumulate. Analyzing economies of this type will provide an alternative to studying models with incomplete markets or models with private information for explaining the observed correlation between fluctuations in individual consumption and individual income. The project will also develop efficient algorithms for computing the equilibria of such economies. In addition, the possibility of taxes and externalities causing the multiplicity of market equilibria will analyzed. This research is important because it will provide new tools for computing equilibria in an economic system which will enhance our fundamental understanding of how market economies work.