Asymptotic methods for asset market equilibrium analysis (Q5942326)

This paper presents bifurcation approximation methods to approximate asset marked equilibrium without assuming completeness of asset markets. The found methods are illustrated with basic economic applications. A single good model, two types of agents and only one source of risk are used by the authors supplemented by hints how to generalize the methods, especially to the multicommodity model. Background for the success of the proposed methods is, that risks are small. The paper contains hints (and also some problems), how to use the given approach numerically, showing in particular how changes in asset availability affect equilibrium.