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Research from University of Paris in Mathematical Economics Provides New Insights
February 5th, 2012
According to the authors of a study from Paris, France, "We consider the two-date model of a financial exchange economy (epsilon, F), with agents' portfolio restrictions either represented by finitely many linear inequality constraints or satisfying Hart's (1974) Weak No Market Arbitrage condition."
"The economy (epsilon, F) is shown to have the same consumption equilibria as a reduced economy (epsilon, F), for which the set of admissible portfolio allocations is bounded," wrote Z. Aouani and colleagues, University of Paris.
The researchers concluded: "Building upon the equilibrium existence result for reduced financial economies (epsilon, F) (Aouani and...
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Source: Insurance Business Weekly (2012-02-05)