Earticle

초록

영어

This paper provides the notion of ‘robust survival’ to examine the existence of equilibrium in a general equilibrium model with incomplete markets (GEI model). The GEI model satisfies robust survival if for each agent, any non-optimal choice is dominated by a choice that can be slightly shaken to be budget-feasible in the wake of slight price-endowment variations. The new survival condition differs from the GEI irreducibility of Gottardi and Hens (1996) in the ability to explain the presence of agents with the cheap initial endowments in equilibrium. Both survival conditions can be rather complementary in investigating the effect of financial innovation on the welfare of agents who lack the cheaper consumption property in the pre-innovation economy. We take an example where the economy satisfies the new survival condition and is not GEI irreducible because an agent has the cheap initial endowments. The economy becomes GEI irreducible when asset markets are completed through financial innovation. This means the agent with the cheap endowments in the pre-innovation economy gains access to cheaper consumptions in the post-innovation economy.

목차

Abstract
 1. INTRODUCTION
 2. THE MODEL
 3. ROBUST SURVIVAL
 4. ROBUST SURVIVAL versus IRREDUCIBILITY
 5. EXISTENCE OF EQUILIBRIUM
 6. CONCLUSION
 REFERENCES

키워드

저자

• Guangsug Hahn [ Division of Humanities and Social Sciences, POSTECH, South Korea ]
• Dong Chul Won [ College of Business Administration, Ajou University, South Korea ] Corresponding Author

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• 간행물명

  한국재무학회 학술대회

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  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330