| ||||
Abstract: 
A general-equilibrium model is developed to highlight the link between neo-Keynesian models of unemployment and recent results on the constrained suboptimality of competitive economies with incomplete asset markets. Although the model deviates from the Arrow-Debreu paradigm only by the absence of some contingent claims, the competitive equilibrium exhibits under�employment and balanced-budget fiscal policies have Keynesian effects which are Pareto improving.
PDF files: Adobe Acrobat Reader ZIP files: PKWARE Home | IFDPs | List of 1993 IFDPs Accessibility | Contact Us Last update: October 16, 2008 |