Notes on sequence economies, transaction costs, and uncertainty
成果类型：
Article
署名作者：
Arrow, KJ; Hahn, F
署名单位：
Stanford University; University of Siena
刊物名称：
JOURNAL OF ECONOMIC THEORY
ISSN/ISSBN：
0022-0531
DOI：
10.1006/jeth.1999.2524
发表日期：
1999
页码：
203-218
关键词：
摘要：
A sequence economy is an economy with trade at every date and state. It is inessential if its equilibria coincide with those of the corresponding Arrow-Debreu economy. We examine some of the conditions for essentiality. (1) If there are transaction costs, then even if all states of nature are spanned by the securities, the economy is generically essential. (2) In the absence of transaction costs, we show by examples that spanning is neither necessary nor sufficient for inessentiality, the former because some state distinctions may be irrelevant, the latter because of possible multiple spot equilibria for a given state. (3) We speculate on the possibility that price-contingent securities might complete the markets and, more generally, on the idea of endogenous uncertainty. Journal of Economic Literature Classification Number: C62. (C) 1999 Academic Press.