On characterizing the probability of survival in a large competitive economy

Rabindra N Bhattacharya, Mukul Majumdar

Research output: Contribution to journalArticle

4 Citations (Scopus)

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 languageEnglish (US)
Pages (from-to)133-153
Number of pages21
JournalReview of Economic Design
Volume6
Issue number2
StatePublished - 2001
Externally publishedYes

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Expenditure
Equilibrium price
Endowments
Exchange economy
Income
Probability of ruin
Utility function

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

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

In: Review of Economic Design, Vol. 6, No. 2, 2001, p. 133-153.

Research output: Contribution to journalArticle

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