If You're so Smart, why Aren't You Rich? Belief Selection in Complete and Incomplete Markets
既然你这么聪明，为什么还不富有？完全与不完全市场中的信念选择
This paper provides an analysis of the asymptotic properties of consumption allocations in a stochastic general equilibrium model with heterogeneous consumers. In particular we investigate the market selection hypothesis, that markets favor traders with more accurate beliefs. We show that in any Pareto optimal allocation whether each consumer vanishes or survives is determined entirely by discount factors and beliefs. Since equilibrium allocations in economies with complete…