{"title":"Existence of financial market equilibria with transaction costs","authors":"MARTA LAITENBERGER","doi":"10.1006/reco.1996.0004","DOIUrl":null,"url":null,"abstract":"<div><p>The purpose of this paper is to give an existence proof of equilibria in a two-period exchange economy with incomplete markets and transaction costs. When tradings on financial markets incur real transaction costs —interpreted as costs of enforcement of financial contracts or real taxation of financial revenues —the set of individual portfolios is bounded by the limited resources of the economy. Existence of equilibria then follows from Kakutani 's fixed point theorem.</p></div>","PeriodicalId":101136,"journal":{"name":"Ricerche Economiche","volume":"50 1","pages":"Pages 69-77"},"PeriodicalIF":0.0000,"publicationDate":"1996-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1006/reco.1996.0004","citationCount":"11","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Ricerche Economiche","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S003550549690004X","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 11
Abstract
The purpose of this paper is to give an existence proof of equilibria in a two-period exchange economy with incomplete markets and transaction costs. When tradings on financial markets incur real transaction costs —interpreted as costs of enforcement of financial contracts or real taxation of financial revenues —the set of individual portfolios is bounded by the limited resources of the economy. Existence of equilibria then follows from Kakutani 's fixed point theorem.