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Journal of Banking & Finance Vol. 28 No. 9 2004

Monitored financial equilibria

Dilip B. Madan

University of Maryland, College Park

Abstract

The financial monitoring system is formalized as an economic primitive in addition to preferences, endowments, production sets and asset spans. New definitions of budget constraints and economic equilibria follow. The concept of a general equilibrium is then appropriately revised to accommodate this perspective on the role of a financial monitoring system. Implications for asset pricing are derived and the relationship of equilibria to risk management considerations is discussed.

DOI
10.1016/j.jbankfin.2003.09.001
Volume
28
Issue
9
Pages
2213-2235
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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