Show simple item record

Authordc.contributor.authorJofré Cáceres, René 
Authordc.contributor.authorRockafellar, R. T. 
Authordc.contributor.authorWets, Roger J-B 
Admission datedc.date.accessioned2019-05-29T13:10:43Z
Available datedc.date.available2019-05-29T13:10:43Z
Publication datedc.date.issued2017
Cita de ítemdc.identifier.citationEconomic Theory, Volumen 63, Issue 1, 2017, Pages 309-345
Identifierdc.identifier.issn14320479
Identifierdc.identifier.issn09382259
Identifierdc.identifier.other10.1007/s00199-016-1031-y
Identifierdc.identifier.urihttps://repositorio.uchile.cl/handle/2250/168859
Abstractdc.description.abstractA theory of economic equilibrium for incomplete financial markets in general real assets is developed in a new formulation with currency-denominated prices. The "goods" are not only commodities, and they can influence utility through retention as an alternative to consumption. Perfect foresight is relinquished in a rolling horizon approach to markets which lets agents pursue long-term interests without being sure of future prices. The framework is that of an economy operating in a fiat currency that agents find attractive to retain, in balance with other needs. The attractiveness comes from Keynesian considerations about uncertainty which until now have not been brought in. The existence of equilibrium is established directly-not just generically-and moreover under weaker assumptions on endowments than before, except that utility functions are taken to be concave. Agents do not need to start out with, or end up with, positive amounts of everything. With a single currency denominating the units of account in all states, price indeterminacy is avoided and all contracts issued in the financial markets can be interpreted as "real contracts." Derivative instruments and collateralized contracts based on money prices are thereby encompassed for the first time. Transaction costs on sales of contracts, generated endogenously, lead to bid-ask spreads and in particular to a gap between interest rates for lending and borrowing money.
Lenguagedc.language.isoen
Publisherdc.publisherSpringer
Type of licensedc.rightsAttribution-NonCommercial-NoDerivs 3.0 Chile
Link to Licensedc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/cl/
Sourcedc.sourceEconomic Theory
Keywordsdc.subjectAsset pricing
Keywordsdc.subjectDerivatives and collateral
Keywordsdc.subjectGeneral economic equilibrium
Keywordsdc.subjectIncomplete markets
Keywordsdc.subjectRetainability of goods
Keywordsdc.subjectTransaction costs
Keywordsdc.subjectVariational analysis
Keywordsdc.subjectVariational inequality
Títulodc.titleGeneral economic equilibrium with financial markets and retainability
Document typedc.typeArtículo de revista
Catalogueruchile.catalogadorlaj
Indexationuchile.indexArtículo de publicación SCOPUS
uchile.cosechauchile.cosechaSI


Files in this item

Icon

This item appears in the following Collection(s)

Show simple item record

Attribution-NonCommercial-NoDerivs 3.0 Chile
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivs 3.0 Chile