On the Specification of Asset Equilibrium in Macroeconomic Models: A Note
Journal of Political Economy
1979
This paper describes two alternative institutional setups for trading in assets and goods. One setup corresponds to a "beginning-of-period:" asset equilibrium specification; the other suggests both beginning and end-of-period equilibrium. It is shown that: (a) each model is internally consistent and the two models are consistent with each another; (b) the two models abide by Walra's law and in neither of them is there a need for a separate "balance-sheet constraint"; and (c) the continuous time version of the two models is well defined.
- DOI
- 10.1086/260745
- Volume
- 87 (1)
- Pages
- 171-177
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref