Multiplicity of equilibria is a prevalent problem in many economic models. Oftenequilibria are characterized as solutions to a system of polynomial equations. This pa-per gives an introduction to the application of GrÄobner basis methods for ¯nding allsolutions of a polynomial system. The...

We derive representations for the stock price drift and volatility in theequilibrium of agents with arbitrary, heterogeneous utility functionsand with the aggregate dividend following an arbitrary Markov diffusion.We introduce a new, intrinsic characteristic of the aggregate dividendprocess that...

We consider a simple continuous-time economy, populated by a largenumber of agents, more risk averse than the log agent, with heterogeneousrisk aversion densely covering an interval. Even though thedividend is a geometric Brownian motion, the equilibrium investmentopportunity set is stochastic...

In all the existing literature on survival in heterogeneous economies,the rate at which an agent vanishes in the long run relative to anotheragent can be characterized by the difference of the so-called survivalindices, where each survival index only depends on the preferencesof the...

We perform a detailed asymptotic analysis of the equilibrium behavior of the assetprices, wealth size and portfolio weights in complete markets equilibria, with long-livedfunds. In equilibrium, the fund with the (closest to) log preference will dominate theother funds in size, in the long-run,...