In this Paper we propose a concept of stability for intertemporal equilibria with rational expectations: current period prices move proportionally to current period excess demand while future prices are formed according to the perfect foresight hypothesis. It is shown that this process is...

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...

Since Debreu (1974) and the strengthenings of this result by Kirman-Koch (1986), Mantel (1976) and Hildenbrand (1989 b), it is known that in general in the Arrow-Debreu Model of General Equilibrium, the market excess demand function does not obey any structure which leads to an unique or...

This paper is aimed at characterizing excess demand functions around a non critical spot price system in a two period exchange economy with incomplete markets and real assets.

We consider two types of firms both operating in two countries. The demand side of the markets of the two countries are separated and each type of firm produces its good in one of these countries. We study the effect of an exchange rate change on the competitive equilibrium prices in each...