### Abstract

We consider a Walrasian exchange economy in which an agent is characterized by a utility function, a random endowment vector, and a function that specifies the minimum expenditure necessary for survival at a given price system. If at any equilibrium price system, the income of the agent is no more than the minimum expenditure for survival, it is ruined. The main results characterize the probability of ruin when the number of agents is large. The implications of stochastic dependence among agents are explored.

Original language | English (US) |
---|---|

Pages (from-to) | 133-153 |

Number of pages | 21 |

Journal | Review of Economic Design |

Volume | 6 |

Issue number | 2 |

State | Published - 2001 |

Externally published | Yes |

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### ASJC Scopus subject areas

- Economics, Econometrics and Finance(all)

### Cite this

*Review of Economic Design*,

*6*(2), 133-153.

**On characterizing the probability of survival in a large competitive economy.** / Bhattacharya, Rabindra N; Majumdar, Mukul.

Research output: Contribution to journal › Article

*Review of Economic Design*, vol. 6, no. 2, pp. 133-153.

}

TY - JOUR

T1 - On characterizing the probability of survival in a large competitive economy

AU - Bhattacharya, Rabindra N

AU - Majumdar, Mukul

PY - 2001

Y1 - 2001

N2 - We consider a Walrasian exchange economy in which an agent is characterized by a utility function, a random endowment vector, and a function that specifies the minimum expenditure necessary for survival at a given price system. If at any equilibrium price system, the income of the agent is no more than the minimum expenditure for survival, it is ruined. The main results characterize the probability of ruin when the number of agents is large. The implications of stochastic dependence among agents are explored.

AB - We consider a Walrasian exchange economy in which an agent is characterized by a utility function, a random endowment vector, and a function that specifies the minimum expenditure necessary for survival at a given price system. If at any equilibrium price system, the income of the agent is no more than the minimum expenditure for survival, it is ruined. The main results characterize the probability of ruin when the number of agents is large. The implications of stochastic dependence among agents are explored.

UR - http://www.scopus.com/inward/record.url?scp=0037738589&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0037738589&partnerID=8YFLogxK

M3 - Article

VL - 6

SP - 133

EP - 153

JO - Review of Economic Design

JF - Review of Economic Design

SN - 1434-4742

IS - 2

ER -