Article ID Journal Published Year Pages File Type
957233 Journal of Economic Theory 2009 12 Pages PDF
Abstract

We demonstrate that information on the aggregate excess demand function of an incomplete real asset market economy is not helpful toward predicting the equilibrium of a new economy to which unredundant assets are added. An innovation of assets can completely change the aggregate excess demand functions.

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Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Excess demand functions when new assets are introduced
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