Incomplete financial markets and differential information

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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
Issue number2
Publication statusPublished - 1 Jan 2010

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