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On characterizing the probability of survival in a large competitive economy

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Part of the Studies in Economic Design book series (DESI)

Abstract

We consider a Walrasian exchange economy in which an agent is characterized by a utility function, a random endowment vector, and a function that specifies the minimum expenditure necessary for survival at a given price system. If at any equilibrium price system, the income of the agent is no more than the minimum expenditure for survival, it is ruined. The main results characterize the probability of ruin when the number of agents is large. The implications of stochastic dependence among agents are explored.

Keywords

Exchange Economy Price System Large Economy Minimum Expenditure Walrasian Equilibrium 
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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Copyright information

© Springer-Verlag Berlin Heidelberg 2003

Authors and Affiliations

  1. 1.Department of MathematicsIndiana University, Rawles HallBloomingtonUSA
  2. 2.Department of EconomicsCornell UniversityIthacaUSA

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