Sunspot Equilibria and the Transfer Paradox

We show that for international economies with two countries, in which agents have additively separable utility functions, the existence of sunspot equilibria is equivalent to the occurrence of the transfer paradox. This equivalence enables us to provide some new insights on the relation of the existence of sunspot equilibria and the multiplicity of spot market equilibria.

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Year of publication:	2004-11-22
Authors:	Hens, Thorsten ; Pilgrim, Beate
Institutions:	Institutt for foretaksøkonomi, Norges Handelshøyskole (NHH)
Subject:	Sunspot Equilibria \| Transfer Paradox

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Extent:	application/pdf
Series:	Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Discussion Papers Number 2004/14 25 pages
Classification:	C62 - Existence and Stability Conditions of Equilibrium ; D52 - Incomplete Markets ; F20 - International Factor Movements and International Business. General ; F30 - International Finance. General ; O12 - Microeconomic Analyses of Economic Development
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005645077