Abstract
The basic model of exchange economies with incomplete financial markets and nominal assets has been thoroughly studied. Cass (1984), Werner (1985), Duffie (1987) and others have proved existence of equilibria. Balasko and Cass (1989) and Geanakoplos and Mas-Colell (1989) have shown that, generically, the equilibrium allocations exhibit a degree of indeterminacy related to the number of states of the world and the number of available financial instruments.
I am greatly indebted to David Cass for many helpful suggestions and discussions. I would like to thank Paolo Siconolfi, Yves Youne’s, Michael Mandler, Nancy Brooks, Jean-Marc Tallon, Unal Zenginobuz and Francis Bloch for helpful discussions.
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© 1993 Springer-Verlag Berlin Heidelberg
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Villanacci, A. (1993). Real Indeterminacy, Taxes and Outside Money in Incomplete Financial Market Economies: I. The Case of Lump Sum Taxes. In: Gori, F., Geronazzo, L., Galeotti, M. (eds) Nonlinear Dynamics in Economics and Social Sciences. Lecture Notes in Economics and Mathematical Systems, vol 399. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-58031-4_19
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DOI: https://doi.org/10.1007/978-3-642-58031-4_19
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