Portfolio choice, exchange rates, and indeterminacy
type: Item
instance of: scholarly article
title: Portfolio choice, exchange rates, and indeterminacy
zbMATH Open document ID: 0656.90010
DOI: 10.1016/0022-0531(88)90141-X
published in: Journal of Economic Theory
publication date: 1988-01-01T00:00:00Z
review text: Consider an exchange economy under uncertainty. The asset market is incomplete: there are fewer assets, A, than states of nature, S. Assets are nominal and are denominated in N distinct ``currencies''. Competitive equilibria are distinct if the associated allocations are distinct. An economy displays K degrees of indeterminacy if the set of distinct competitive equilibria contains a K-dimensional open set. Generically, the economy displays NS-A(N-1)-N degrees of indeterminacy.
Mathematics Subject Classification ID: 91B50
Mathematics Subject Classification ID: 91B28
zbMATH DE Number: 4072655
zbMATH Keywords: degree of indeterminacy
zbMATH Keywords: incomplete asset market
zbMATH Keywords: exchange economy under uncertainty
zbMATH Keywords: Competitive equilibria
author: Herakles M. Polemarchakis
MaRDI profile type: Publication
cites work: Q5824927
cites work: Q5588318
cites work: Economies with a Finite Set of Equilibria
cites work: Smooth Preferences
cites work: Real indeterminacy with financial assets
cites work: Observability and optimality
cites work: Options and equilibrium
cites work: Equilibrium in economies with incomplete financial markets
full work available at URL: 0022-0531(88)90141-x
OpenAlex ID: W2148528716
description: scientific article; zbMATH DE number 4072655