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The Arrow – Debreu model applies to economies with maximally complete markets, in which there exists a market for every time period and forward prices for every commodity at all time periods and in all places.
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* 1964 – Vietnam War: Operation Pierce Arrow – American aircraft from carriers and bomb North Vietnam in retaliation for strikes against U. S. destroyers in the Gulf of Tonkin.
* 1959 – The Avro Arrow program to design and manufacture supersonic jet fighters in Canada is cancelled by the Diefenbaker government amid much political debate.
* 1971 – Britain launches the satellite Prospero into low Earth orbit atop a Black Arrow carrier rocket, the only British satellite to date launched by a British rocket.
* 1856 – The Second Opium War between several western powers and China begins with the Arrow Incident on the Pearl River.
* 1944 – The Arrow Cross Party ( very similar to Hitler's NSDAP ( Nazi party )) takes power in Hungary.
On the recommendation of Don Siegel, Peckinpah established himself during the late 1950s as a scriptwriter of Western series of the era, selling scripts to Gunsmoke, Have Gun – Will Travel, The Rifleman, Broken Arrow, Klondike, and Dick Powell's Zane Grey Theater.
** Vietnam War: Operation Pierce Arrow – Aircraft from carriers USS Ticonderoga and USS Constellation bomb North Vietnam in retaliation for strikes against U. S. destroyers in the Gulf of Tonkin.
* June 30 – The Black Arrow by Robert Louis Stevenson first appears as a serial in Young Folks ; A Boys ' and Girls ' Paper of Instructive and Entertaining Literature.
* July 29 – The United Kingdom opts out of the Space Race, with the cancellation of its Black Arrow launch vehicle.
* December 12 – Arrow Air Flight 1285, a Douglas DC-8, crashes after takeoff in Gander, Newfoundland, killing 256, 248 of whom were U. S. servicemen returning to Fort Campbell, Kentucky from overseeing a peacekeeping force in Sinai.
* October 8 – The Second Opium War between several western powers and China begins with the Arrow Incident on the Pearl River.
Arrow and Debreu
Working with Gérard Debreu, Arrow produced the first rigorous proof of the existence of a market clearing equilibrium, given certain restrictive assumptions.
In mathematical economics, the Arrow – Debreu model ( also referred to as the Arrow – Debreu – McKenzie model ) suggests that under certain economic assumptions ( convex preferences, perfect competition and demand independence ) there must be a set of prices such that aggregate supplies will equal aggregate demands for every commodity in the economy.
It is named after Kenneth Arrow, Gérard Debreu, and sometimes also Lionel W. McKenzie for his later improvements in 1959.
Compared to earlier models, the Arrow – Debreu model radically generalized the notion of a commodity, differentiating commodities by time and place of delivery.
In financial economics the term Arrow – Debreu is most commonly used with reference to an Arrow – Debreu security.
A canonical Arrow – Debreu security is a security that pays one unit of numeraire if a particular state of the world is reached and zero otherwise ( a so called " state price ").
As such, any derivatives contract whose settlement value is a function on an underlying whose value is uncertain at contract date can be decomposed as linear combination of Arrow – Debreu securities.
Since the work of Breeden and Lizenberger ( 1978 ), a large number of researchers have used options to extract Arrow – Debreu prices for a variety of applications in financial economics .< ref > ALMEIDA, Caio, and VICENTE, José ( December 2008 ).
" Arrow – Debreu model of general equilibrium ", The New Palgrave: A Dictionary of Economics, v. 1, pp. 116 – 24.
* Notes on the Arrow – Debreu – McKenzie Model of an Economy, Prof. Kim C. Border California Institute of Technology
The Mathematical Programming System for General Equilibrium analysis ( MPSGE ) is a language used for formulating and solving Arrow – Debreu economic equilibrium models and exists as a subsystem within GAMS.
This was first demonstrated graphically by economist Abba Lerner and mathematically by economists Harold Hotelling, Oskar Lange, Maurice Allais, Kenneth Arrow and Gérard Debreu.
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