Singapore Management University
Kwansei Gakuin University
抄録
Do price forecasts of rational economic agents need to coincide in perfectly com-petitive complete markets in order for markets to allocate resources efficiently? To address this question, we define an efficient temporary equilibrium (ETE) within the framework of a two period economy. Although an ETE allocation is intertemporally efficient and is obtained by perfect competition, it can arise without the agents fore-casts being coordinated on a perfect foresight price. We show that there is a one dimensional set of such Pareto efficient allocations for generic endowments.
内容記述
Publisher's another name: JSPS Grants-in-Aid for Scientific Research (S) Central Bank Communication Design
JEL classification numbers: D51, D53, D61
Decentralizability of Efficient Allocations with Heterogenous Forecasts
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