Basak, Suleyman; Cass, David; Licari, Juan Manuel; … - In: Journal of Economic Theory 142 (2008) 1, pp. 100-127
This paper explores the role of portfolio constraints in generating multiplicity of equilibrium. We present a simple financial market economy with two goods and two households, households who face constraints on their ability to take unbounded positions in risky stocks. Absent such constraints,...
