Incomplete financial markets and differential information

Marta Cristina Vieira Faias Mateus

doi:10.1007/s00199-008-0429-6

Incomplete financial markets and differential information

Marta Cristina Vieira Faias Mateus

DM - Departamento de Matemática

Research output: Contribution to journal › Article › peer-review

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 language	Unknown
Pages (from-to)	189-206
Journal	Economic Theory
Volume	43
Issue number	2
DOIs	https://doi.org/10.1007/s00199-008-0429-6
Publication status	Published - 1 Jan 2010

Access to Document

10.1007/s00199-008-0429-6

Cite this

@article{ca80d54cfbb74621b7cbe276ae410f48,

title = "Incomplete financial markets and differential information",

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.",

keywords = "Consumption, general, markets, assets, Assets, Financial, Non-enlightening, equilibrium, real, Information, indeterminacy, constraints",

author = "Mateus, {Marta Cristina Vieira Faias}",

year = "2010",

month = jan,

day = "1",

doi = "10.1007/s00199-008-0429-6",

language = "Unknown",

volume = "43",

pages = "189--206",

journal = "Economic Theory",

issn = "0938-2259",

publisher = "Springer Science Business Media",

number = "2",

}

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

SN - 0938-2259

VL - 43

SP - 189

EP - 206

JO - Economic Theory

JF - Economic Theory

IS - 2

ER -