Incomplete financial markets and differential information

Marta Cristina Vieira Faias Mateus

Research output: Contribution to journal › Article

2 Citations (Scopus)

Abstract

We provide a model of an incomplete markets economy where private restrictions on consumption are interpreted as lack of information. We prove existence of an equilibrium where agents are unable to infer any additional information from prices. When assets are nominal, these non-enlightening equilibrium prices result in a reduction of the degree of real indeterminacy.
Original languageUnknown
Pages (from-to)189-206
JournalEconomic Theory
Volume43
Issue number2
DOIs
Publication statusPublished - 1 Jan 2010

Keywords

    Cite this

    Mateus, Marta Cristina Vieira Faias. / Incomplete financial markets and differential information. In: Economic Theory. 2010 ; Vol. 43, No. 2. pp. 189-206.
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    abstract = "We provide a model of an incomplete markets economy where private restrictions on consumption are interpreted as lack of information. We prove existence of an equilibrium where agents are unable to infer any additional information from prices. When assets are nominal, these non-enlightening equilibrium prices result in a reduction of the degree of real indeterminacy.",
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    author = "Mateus, {Marta Cristina Vieira Faias}",
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    doi = "10.1007/s00199-008-0429-6",
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    Mateus, MCVF 2010, 'Incomplete financial markets and differential information' Economic Theory, vol. 43, no. 2, pp. 189-206. https://doi.org/10.1007/s00199-008-0429-6

    Incomplete financial markets and differential information. / Mateus, Marta Cristina Vieira Faias.

    In: Economic Theory, Vol. 43, No. 2, 01.01.2010, p. 189-206.

    Research output: Contribution to journal › Article

    TY - JOUR

    T1 - Incomplete financial markets and differential information

    AU - Mateus, Marta Cristina Vieira Faias

    PY - 2010/1/1

    Y1 - 2010/1/1

    N2 - We provide a model of an incomplete markets economy where private restrictions on consumption are interpreted as lack of information. We prove existence of an equilibrium where agents are unable to infer any additional information from prices. When assets are nominal, these non-enlightening equilibrium prices result in a reduction of the degree of real indeterminacy.

    AB - We provide a model of an incomplete markets economy where private restrictions on consumption are interpreted as lack of information. We prove existence of an equilibrium where agents are unable to infer any additional information from prices. When assets are nominal, these non-enlightening equilibrium prices result in a reduction of the degree of real indeterminacy.

    KW - Consumption

    KW - general

    KW - markets

    KW - assets

    KW - Assets

    KW - Financial

    KW - Non-enlightening

    KW - equilibrium

    KW - real

    KW - Information

    KW - indeterminacy

    KW - constraints

    U2 - 10.1007/s00199-008-0429-6

    DO - 10.1007/s00199-008-0429-6

    M3 - Article

    VL - 43

    SP - 189

    EP - 206

    JO - Economic Theory

    JF - Economic Theory

    SN - 0938-2259

    IS - 2

    ER -

    Mateus MCVF. Incomplete financial markets and differential information. Economic Theory. 2010 Jan 1;43(2):189-206. https://doi.org/10.1007/s00199-008-0429-6

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