We consider a frictionless constant endowment economy based on Leeper (1991). In this economy, it is shown that, under …

In a long-run risk model with stochastic volatility and frictionless markets, I express expected forex returns as a …

Frictionless economy is the new concept emerged from late 90s1. Its core idea is to remove the time both suppliers and … the perfect efficiency. But due to the various reasons, frictionless economy is rarely seen in the real world. The most … made the collection of information to be easier. Such trend renews people’s interesting on the frictionless economy. In …

nice duality theory as in frictionless models. …

No. As well-specified Walrasian general equilibrium systems, frictionless models are isomorphic with the Arrow … frictionless model by appending a quantity equation or cash-in-advance constraint makes the error of converting money into a … friction. Furthermore, as frictionless models have no use for money or nominal values it makes no sense to use them to …