Academic Commons


Arbitrage and Equilibrium in Economies with Infinitely Many Securities and Commodities

Chichilnisky, Graciela; Heal, Geoffrey M.

Welfare economics and finance have each evolved their own equilibrium concepts. In
welfare economics this is the concept of a competitive general equilibrium: in finance, it is the
absence of arbitrage opportunities. These concepts emerged independently and were initially
seen as quite distinct. Each plays an absolutely central role in its field, both in the theory and
in practical applications. In the 1980s researchers in both fields began to investigate the
connections between the two concepts.



More About This Work

Academic Units
Department of Economics, Columbia University
Department of Economics Discussion Papers, 618
Published Here
February 17, 2011


July 1992.

Academic Commons provides global access to research and scholarship produced at Columbia University, Barnard College, Teachers College, Union Theological Seminary and Jewish Theological Seminary. Academic Commons is managed by the Columbia University Libraries.