Existence of Financial Equilibria in Continuous Time with Potentially Complete Markets
19 Pages Posted: 20 Mar 2012 Last revised: 30 Jan 2013
Date Written: January 20, 2013
We prove that in smooth Markovian continuous-time economies with potentially complete asset markets, Radner equilibria with endogenously complete markets exist.
Keywords: Potentially complete market, Continuous-time financial market, Radner equilibrium, Itô diffusion, Analytic transition density
JEL Classification: D52, D53, G12
Suggested Citation: Suggested Citation