General Equilibrium in a Heterogeneous-Agent Incomplete-Market Economy with Many Consumption Goods and a Risk-Free Bond

We study a pure-exchange incomplete-market economy with heterogeneous agents. In each period, the agents choose how much to save (i.e., invest in risk-free bond), consume, and which bundle of goods consume while their endowments are fluctuating. focus on competitive stationary equilibrium (CSE) wealth distribution is invariant, maximize expected discounted utility, both prices consumption interest rate market-clearing. Our main contribution extend some general results an Bewley-type many goods. Under mild conditions agents' preferences, we show that aggregate demand for depends only relative savings homogeneous degree prices, prove existence CSE. When preferences can be represented by CES (constant elasticity substitution) utility function substitution higher than or equal one, CSE unique. same inequality does not change goods, decreases rate. shed light impact market incompleteness properties models.