Incomplete Markets, Allocative Efficiency and the Information Revealed by Prices - Archive ouverte HAL Access content directly
Reports Year :

Incomplete Markets, Allocative Efficiency and the Information Revealed by Prices

(1) , (2)
1
2

Abstract

We compare rational expectations equilibria with different degrees of information revelation through prices. These equilibria arise in a two-period exchange economy with finitely many states and signals, multiple commodities and incomplete financial markets for nominal assets. We show that there are always equilibria where information is redundant in the sense of being of no value to the uninformed traders. We give conditions under which for a generic set of economies, parametrized by endowments and utilities, there exist open sets of equilibria for which allocative and informational efficiency are independent, with implications for monetary policy.
Not file

Dates and versions

hal-00599916 , version 1 (11-06-2011)

Identifiers

  • HAL Id : hal-00599916 , version 1

Cite

Alessandro Citanna, Antonio Villanacci. Incomplete Markets, Allocative Efficiency and the Information Revealed by Prices. 1999. ⟨hal-00599916⟩

Collections

HEC CNRS LARA
197 View
0 Download

Share

Gmail Facebook Twitter LinkedIn More