Reduced equivalent form of a financial structure - Archive ouverte HAL
Article Dans Une Revue Journal of Mathematical Economics Année : 2011

Reduced equivalent form of a financial structure

Résumé

We consider the two-date model of a financial exchange economy (E, F), with agents' portfolionext term restrictions either represented by finitely many linear inequality constraints or satisfying Hart (1974)'s Weak No Market Arbitrage condition. The economy (E, F) is shown to have the same consumption equilibria as a reduced economy (E, T'), for which the set of admissible previous termportfolio allocations is bounded. Building upon the equilibrium existence result for reduced financial economies (E, !F'), (Aouani and Cornet, 2009), we then deduce the existence of equilibra of (E, F), under standard assumptions on the consumption side and under the aforementioned assumption on the financial side.

Dates et versions

hal-00629785 , version 1 (06-10-2011)

Identifiants

Citer

Zaier Aouani, Bernard Cornet. Reduced equivalent form of a financial structure. Journal of Mathematical Economics, 2011, 47 (3, "special issue in honour of Andreu Mas-Colell"), pp.318-327. ⟨10.1016/j.jmateco.2010.12.015⟩. ⟨hal-00629785⟩
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