dc.contributor | FGV | |
dc.creator | Raad, Rodrigo Jardim | |
dc.date.accessioned | 2018-05-10T13:37:06Z | |
dc.date.accessioned | 2022-11-03T20:11:19Z | |
dc.date.available | 2018-05-10T13:37:06Z | |
dc.date.available | 2022-11-03T20:11:19Z | |
dc.date.created | 2018-05-10T13:37:06Z | |
dc.date.issued | 2016-01 | |
dc.identifier | 0938-2259 | |
dc.identifier | http://hdl.handle.net/10438/23575 | |
dc.identifier | 10.1007/s00199-015-0927-2 | |
dc.identifier | 000373304900001 | |
dc.identifier.uri | https://repositorioslatinoamericanos.uchile.cl/handle/2250/5033297 | |
dc.description.abstract | This paper analyzes general equilibrium models with finite heterogeneous agents who anticipate future prices through a price expectation function with or without accuracy. I show the existence of a recursive equilibrium with a minimal state space through the Kakutani-Fan-Glicksberg fixed point theorem. Moreover, any such recursive equilibrium implements a sequential equilibrium and its uniqueness implies its continuity. Particularly, I prove that an agent making persistent errors in the price expectation function is driven out of the market in any sequential equilibrium implemented by a continuous recursive equilibrium. This result is established under the condition that exogenous variables converge in probability and assuming that the relative variability of all stochastic discount factors is low. | |
dc.language | eng | |
dc.publisher | Springer | |
dc.relation | Economic theory | |
dc.rights | restrictedAccess | |
dc.source | Web of Science | |
dc.subject | General equilibrium | |
dc.subject | Recursive equilibrium | |
dc.subject | Price Perfect Foresight | |
dc.subject | Market selection hypothesis | |
dc.subject | Kakutani-Fan-Glicksberg fixed point theorem | |
dc.subject | Stationary markov equilibria | |
dc.title | Recursive equilibrium with Price Perfect Foresight and a minimal state space | |
dc.type | Article (Journal/Review) | |