The Aggregate Weak Axiom in a Financial Economy through Dominant Substitution Effects.
Consider a two period financial economy with incomplete markets and with agents having von Neumann-Morgenstern utility functions. It is well known that when the economy’s endowments are collinear, its excess demand function will obey the weak axiom when certain mild restrictions are imposed on agent...
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| Format: | Working paper |
| Language: | English |
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Nuffield College (University of Oxford)
2004
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