Abstract
This paper studies the indeterminacy of equilibrium allocations in an economy with spot commodity markets and incomplete futures markets for financial assets. We provide a description of the degree of indeterminacy in the case of two-period economy with an arbitrary market structure, and in the case of multiperiod economy. By the degree of indeterminacy we mean the highest dimension a of manifold contained in the set of equilibrium allocations of commodities.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 217-232 |
| Number of pages | 16 |
| Journal | Journal of Mathematical Economics |
| Volume | 19 |
| Issue number | 1-2 |
| DOIs | |
| State | Published - 1990 |
Bibliographical note
Funding Information:*The research was supported by the Deutsche Forschungsgemeinschaft, SFB303. The paper was written when the author was visiting the Institute for Mathematical Studies in the Social Sciences, Stanford University. I am pleased to thank David Cass for helpful remarks.