GENERIC NONEXISTENCE OF EQUILIBRIA IN FINANCE MODELS

The usual financial models describe the commodities as being stochastic processes. This suggests L2 as a commodity space. Also it is common to require the derivative of the utility function to be infinite at zero to assure quasi interior solutions. This enables one to derive the usual asset pricing formulas. In this paper we show that, under those assumptions, generically on initial endowments Walrasian equilibria do not exist.