Theory Of Incomplete Markets

Author: Michael Magill
Editor: MIT Press
ISBN: 9780262632546
File Size: 59,59 MB
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Authoritative and comprehensive, yet comprehensible. A remarkable blend of rigorous elegance and economic wisdom. The Theory of Incomplete Markets provides a unified framework for analyzing the real, financial, and monetary sectors of an economy. It describes an innovative theory that takes into account the fact that in order to coordinate their activities and share their risks, agents are forced by the imperfections in their knowledge and their propensity for opportunistic behavior to trade sequentially and to make only limited contractual commitments into the future. This book studies the consequences of trading with such a sequential and incomplete market structure for the equilibria of an economy: competitive markets no longer provide the ideal way of allocating resources and even with rational expectations monetary policy is nonneutral.The theory presented in this book retains the simplicity, coherence, and generality that are the hallmarks of traditional general equilibrium theory, while moving the nature of the markets, contracts, and constraints on agent participation into closer conformity with the actual structure of markets observed in the real world.Students and researchers will appreciate how the book incorporates results from the latest research while remaining accessible to a wide audience. The theory is built from the bottom up, with ample nontechnical motivation and a user-friendly presentation that constantly draws on the reader's economic and geometric intuition. Historical discussions in each chapter help clarify the origins and current limitations of the theory.This is the first of two volumes. Volume 1 focuses on the role and functioning of financial markets in a competitive setting. Volume 2 will study more general models that combine the real and financial sectors of the economy and depart from a purely competitive analysis. In addition to providing basic insights needed to understand the theory of incomplete markets, this volume provides the essential tools needed to understand the more general analysis of Volume 2.
Theory of Incomplete Markets
Language: en
Pages: 558
Authors: Michael Magill, Martine Quinzii
Categories: Business & Economics
Type: BOOK - Published: 2002 - Publisher: MIT Press

Authoritative and comprehensive, yet comprehensible. A remarkable blend of rigorous elegance and economic wisdom. The Theory of Incomplete Markets provides a unified framework for analyzing the real, financial, and monetary sectors of an economy. It describes an innovative theory that takes into account the fact that in order to coordinate
General Equilibrium Foundations of Finance
Language: en
Pages: 299
Authors: Thorsten Hens, Beate Pilgrim
Categories: Business & Economics
Type: BOOK - Published: 2013-03-09 - Publisher: Springer Science & Business Media

The purpose of this book is to give a sound economic foundation of finance. Finance is a coherent branch of applied economics that is designed to understand financial markets in order to give advice for practical financial decisions. This book argues that for a sound economic foundation of finance the
Taxation, Incomplete Markets, and Social Security
Language: en
Pages: 160
Authors: Peter A. Diamond
Categories: Business & Economics
Type: BOOK - Published: 2005 - Publisher: MIT Press

An analysis of social security policy based on optimal tax theory.
Parameterizing Expectations for Incomplete Markets Economies
Language: en
Pages:
Authors: Peter A. Diamond
Categories: Business & Economics
Type: BOOK - Published: - Publisher: Fundacion BBVA

Books about Parameterizing Expectations for Incomplete Markets Economies
Option Pricing in Incomplete Markets
Language: en
Pages: 185
Authors: Yoshio Miyahara
Categories: Mathematics
Type: BOOK - Published: 2012 - Publisher: World Scientific

This volume offers the reader practical methods to compute the option prices in the incomplete asset markets. The [GLP \& MEMM] pricing models are clearly introduced, and the properties of these models are discussed in great detail. It is shown that the geometric Lvy process (GLP) is a typical example