A New Survival Assumption for GEI Economies

• 영문명: A New Survival Assumption for GEI Economies
• 발행기관: 한국계량경제학회
• 저자명: 한광석 원동철
• 간행물 정보: 『JOURNAL OF ECONOMIC THEORY AND ECONOMETRICS』Vol.34 No.3, 25~47쪽, 전체 23쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2023.09.30

영문 초록

This paper introduces the concept of “robust survival” as a sufficient condition for the existence of equilibrium in a general equilibrium model with incomplete markets (GEI). The robust survival condition is weaker than the GEI irreducibility condition proposed by Gottardi and Hens (1996) in the GEI model, and it is less affected by the degree of market incompleteness. Unlike the GEI irreducibility condition of Gottardi and Hens (1996), the robust survival condition provides an explanation for the existence of a GEI equilibrium in which an agent can consume with the minimum expenditure on feasible consumptions. This condition can be used to evaluate the impact of financial innovation on the welfare of the poor. When an economy passes the robust survival condition but fails the GEI irreducibility condition, some agents may be “poor” in pre-innovation equilibrium. In this case, we can apply the GEI irreducibility condition to the post-innovation economy to determine whether financial innovation makes the invisible hand benevolent towards the poor.

목차

1. INTRODUCTION

2. THE MODEL

3. ROBUST SURVIVAL vs. GEI IRREDUCIBILITY

4. EXISTENCE OF EQUILIBRIUM

5. IMPLICATIONS OF SURVIVAL ASSUMPTIONS TO FINANCIAL INNOVATION

6. CONCLUSION

REFERENCES

키워드

Incomplete markets GEI irreducibility robust survival financial innovation state-contingent poverty