Pareto improving monetary policy in incomplete markets

Arbeitspapier

We show that for generic economies, every equilibrium admits Pareto improving monetary policy, even with multiple commodities per state. The main assumption is that asset incompleteness be intermediate, in that household heterogeneity does not exceed the number of assets present and absent. We argue this as a special case of the general framework in Turner (2003b) for proving the generic existence of Pareto improving taxes.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2006-04

Classification and Topics

• Classification: Wirtschaft ; Incomplete Markets ; Allocative Efficiency; Cost-Benefit Analysis ; Monetary Policy
• Subject: Pareto improvement ; Slutsky ; monetary ; incomplete ; generic ; Geldpolitik ; Unvollkommener Markt ; Mikroökonomische Konsumfunktion ; Slutsky Gleichung ; Pareto-Optimum ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Turner, Sergio ; Tumennasan, Norovsambuu
• Event: Veröffentlichung
• (who): Brown University, Department of Economics
• (where): Providence, RI
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/80184
• Last update: 10.03.2025, 11:41 AM CET