Stability of marketable payoffs with long-term assets (Q481378): Difference between revisions

This paper discusses the stability of marketable payoffs incorporating long-term assets and equilibrium in a finite multi-period stochastic financial exchange economy. A finite-time event tree describing time and uncertainty and a financial structure incorporating long-term assets are presented in Section 2. The continuity of marketable payoffs is discussed in Section 3. In particular, a sufficient condition for the continuity is presented. The existence of a financial equilibrium in the stochastic financial exchange economy is established in Section 4.