| Jean-Marc Bottazzi, University of Paris 1 Pantheon-Sorbonne Moncef Meddeb, University of Paris 1 Pantheon-Sorbonne |
| On Generically Complete Markets with an Open-Ended Horizon |
| Session: C-2-1 Saturday 12 August 2000 by Meddeb, Moncef |
| In this paper we generalize Magill and Shafer's (1990) analysis of generically complete markets in the presence of an open-ended horizon. Doing this we are faced with difficulties specific to the presence of infinitely many periods. Until now these difficulties did not allow any satisfactory generalization of the genericity argument in Duffie and Shafer (1985,1986). These difficulties are threefold: how to get differentiability of an equilibrium equation; which transversality theorem can be applied (and what is the corresponding notion of genericity); and how to ``count'' dimensions? |