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Stability of marketable payoffs with long-term assets. (English) Zbl 1318.91140

This paper discusses the stability of marketable payoffs incorporating long-term assets and equilibrium in a finite multi-period stochastic financial exchange economy. A finite-time event tree describing time and uncertainty and a financial structure incorporating long-term assets are presented in Section 2. The continuity of marketable payoffs is discussed in Section 3. In particular, a sufficient condition for the continuity is presented. The existence of a financial equilibrium in the stochastic financial exchange economy is established in Section 4.

MSC:

91B52 Special types of economic equilibria
91B42 Consumer behavior, demand theory
91B50 General equilibrium theory
91G80 Financial applications of other theories

References:

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