Valuation Equilibria with Transactions Costs

95-1

Posted: 22 Jul 1998

See all articles by Satyajit Chatterjee

Satyajit Chatterjee

Federal Reserve Bank of Philadelphia

Philip Dean Corbae

University of Wisconsin - Madison - Department of Finance, Investment and Banking

Date Written: Not Provided

Abstract

This paper studies economic environments with transactions technology. It shows that a simple redefinition of the commodity space allows these environments to be studied as instances of Debreu's valuation equilibrium. Thus, results from standard general equilibrium theory, namely, proof of existence of competitive equilibrium, and the First and Second Welfare Theorems are applicable. These results should provide a firm foundation for the quantitative study of resource allocation in the presence of transactions costs. The views expressed here are those of the authors and do not necessarily represent the views of the Federal Reserve Bank of Philadelphia or the Federal Reserve System.

JEL Classification: D23, D58

Suggested Citation

Chatterjee, Satyajit and Corbae, Philip Dean, Valuation Equilibria with Transactions Costs (Not Provided). 95-1. Available at SSRN: https://ssrn.com/abstract=6946

Satyajit Chatterjee (Contact Author)

Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States
215-574-3861 (Phone)
215-574-4364 (Fax)

HOME PAGE: http://sites.google.com/site/chatterjeesatyajit/home

Philip Dean Corbae

University of Wisconsin - Madison - Department of Finance, Investment and Banking ( email )

975 University Avenue
Madison, WI 53706
United States
512-471-3211 (Phone)
512-471-3510 (Fax)

Register to save articles to
your library

Register

Paper statistics

Abstract Views
455
PlumX Metrics