Loading...
On the Allocative Efficiency of Competitive Prices in Economies with Incomplete Markets
Sabarwal, Tarun
Sabarwal, Tarun
Citations
Altmetric:
Abstract
A new measure of constrained efficiency for application in economies with incomplete markets is presented. This measure --- termed Allais- Malinvaud efficiency --- can be viewed as adjusting for market incompleteness not fully captured in previous work. It is shown that equilibrium allocations in Radner-GEI economies are always Allais- Malinvaud efficient. In particular, a re-distribution of assets in equilibrium cannot induce a relative price change that leads to an Allais-Malinvaud improvement. Moreover, this result extends to Radner- GEI economies in which consumer liability is limited by bankruptcy.
Description
Date
2003-09
Journal Title
Journal ISSN
Volume Title
Publisher
Collections
Research Projects
Organizational Units
Journal Issue
Keywords
Allocative efficiency, Allais-Malinvaud efficiency, Incomplete markets
Citation
Sabarwal, Tarun, (2004), On the Allocative Efficiency of Competitive Prices in Economies with Incomplete Markets, GE, Growth, Math methods, EconWPA, http://EconPapers.repec.org/RePEc:wpa:wuwpge:0410006.