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Optimality of Equilibrium of Plans, Prices and Price Expectations

  • Roger Guesnerie
  • Jean-Yves Jaffray
Part of the International Economic Association Series book series (IEA)

Abstract

In the classical model of resource allocation, often called the Arrow-Debreu model, all transactions are determined at the outset; the contracts are final and the history of the economy is in accordance with the initial plans; all possibility of reopening the markets can be dispensed with; it would serve no real purpose.

Keywords

Financial Market General Equilibrium Elementary Event Price System Bond Market 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. [1]
    K. J. Arrow, ‘Le rôle des valeurs boursières pour la répartition la meilleure des risques’, pp. 41–7 in Econométrie Colloque International XL (Paris, CNRS: 1953); translated as ‘The Role of Securities in the Optimal Allocation of Risk-Bearing’, Review of Economic Studies vol. XXXI (1964), pp. 91–6.Google Scholar
  2. [2]
    G. Debreu, Theory of Value (New York: Wiley, 1959).Google Scholar
  3. [3]
    R. Guesnerie and T. de Montbrial, ‘Allocation under Uncertainty, a survey’, chapter 4 supra.Google Scholar
  4. [4]
    R. Guesnerie and J. Y. Jaffray, ‘Optimalité des équilibres de plans, de prix et d’anticipations de prix’, mimeographed July 1971.Google Scholar
  5. [5]
    R. Radner, ‘Existence of Equilibrium of Plans, Prices and Price Expectations in a Sequence of Markets’ Econometrica vol. XL (1972), pp. 289–303.CrossRefGoogle Scholar
  6. [6]
    R. Radner, ‘Competitive Equilibrium under Uncertainty’, Econometrica vol. XXXVI (1968), pp. 31–58.CrossRefGoogle Scholar
  7. [7]
    T. de Montbrial, ‘Intertemporal General Equilibrium and Interest Rates Theory’. Ecole Polytechnique (1970).Google Scholar

Copyright information

© International Economic Association 1974

Authors and Affiliations

  • Roger Guesnerie
    • 1
  • Jean-Yves Jaffray
    • 2
  1. 1.CepremapParisFrance
  2. 2.Laboratoire D’ÉconometrieParisFrance

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