Market Demand Functions in the CAPM

We demonstrate that in a CAPM economy Walras Law and the Tobin Separation Property characterize market demand in finite sets of prices. Consequently, for any number n there exist CAPM economies which have at least n equilibria and hence have n different beta pricing fomulas. It is shown that the lower bound on the number of equilibria, n, is robust to pertubations of endowments.

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Year of publication:	1995-03
Authors:	Hens, Thorsten ; Andres L=EEffler
Institutions:	University of Bonn, Germany
Subject:	CAPM \| Market Demand \| multiplicity of equilibria

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Extent:	application/postscript
Series:	Discussion Paper Serie A.
Type of publication:	Book / Working Paper
Notes:	1 pages long
Classification:	C62 - Existence and Stability Conditions of Equilibrium ; D51 - Exchange and Production Economies ; G12 - Asset Pricing
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004968172