General equilibrium, incomplete markets and sunspots: A symposium in honor of David Cass: Guest editors' introduction

S. Spear, A. CITANNA, P. Siconolfi, H. M. POLEMARCHAKIS, J. Donaldson

Economic Theory

octobre 2004, vol. 24, n°3, pp.465-469

Départements : Economie et Sciences de la décision, Finance

This special edition of Economic Theory honors David Cass, one of Economic Theory's founding editors, on the 30th anniversary of his joining the faculty at the University of Pennsylvania's Economics Department. The contributions to this volume are, for the most part, from Cass' students or co-authors, and we hope they communicate both to Cass and to the economics profession generally the high regard those of us who have trained under Cass' tutelage or worked with him on research have for him. His first major contribution to economics was the characterization of optimal growth trajectories in his thesis work under Hirofumi Uzawa's supervision. The celebrated Cass criterion for optimal time paths in the one good growth model quickly followed. The essence of this work is the search for price characterizations of efficiency for dynamic time paths, an effort that directly pointed the way to the subsequent full dynamic decentralization of the neoclassical optimal growth model, a fact that permits its use for modeling a wide range of business cycle and other macroeconomic phenomena. Cass' major contribution to economic theory was his work on general equilibrium with incomplete markets, work which grew out of his exploration of the question of existence of sunspot equilibria in models with incomplete asset markets. Cass' follow-on work on existence and determinacy of general equilibrium in models with incomplete asset markets spawned another large literature which has come to be known simply as GEI