Competitive equilibria of economies with a continuum of consumers and aggregate shocks

• 成果类型: Article
• 署名作者: Miao, JJ
• 署名单位: Boston University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2005.01.005
• 发表日期: 2006
• 页码: 274-298
• 关键词: Competitive equilibrium; Recursive Equilibrium; aggregate distribution; Heterogeneity; incomplete markets

摘要

This paper studies competitive equilibria of a production economy with aggregate productivity shocks. There is a continuum of consumers who face borrowing constraints and individual labor endowment shocks. The dynamic economy is described in terms of sequences of aggregate distributions. The existence of competitive equilibrium is proven and a recursive characterization is established. In particular, it is shown that for any competitive equilibrium, there is a payoff equivalent competitive equilibrium that is generated by a suitably defined recursive equilibrium. (c) 2005 Elsevier Inc. All rights reserved.