Overlapping generations models with incomplete markets (Q1602931)

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Overlapping generations models with incomplete markets
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    Overlapping generations models with incomplete markets (English)
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    24 June 2002
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    For exchange economies as mentioned in the title, where there are countably many discrete time periods, an infinite event-tree with a continuum of branches at each node (reflecting the stochastic structure of the model), a matrix of returns, describing the financial side of the economy and finally, where it is said (reflecting the demographic structure of the economy), what the (finitely or infinitely lived) agents can do (consumtion, portfolio set, utility function, endowment, preferences), the authors prove (under conditions) equilibrium existence results. Construction of an truncated economy serves as background of the proof: Using results for the truncated case and (not so easy obtained) boundedness arguments for the multipliers of the agents a limiting process gives the wanted existence.
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    overlapping generations model
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    incomplete market
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    continuum of states
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    existence of equilibrium
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