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Abstract
This paper shows how the general equilibrium model with incomplete markets (GEI) can be extended to an open-ended future, thereby providing a natural setting for analyzing problems in macroeconomics. To obtain a concept of equilibrium which respects the incompleteness of markets and ensures that agents' plans are node consistent, a transversality condition must be imposed on ever3r subtree. Conditions for the existence of an equilibrium as well as certain properties of an equilibrium are derived. The prices of infinite-lived securities in zero net supply are shown to permit speculative bubbles which affect (do not affect) the equilibrium allocation if markets are incomplete (complete). The prices of securities in positive net supply (for example equity contracts) cannot have speculative bubbles, thus limiting the extent of speculation in the GET model.