This paper explores general equilibrium asset pricing implications in a two-period model in which the production side explicitly describes the thermodynamic process unavoidably connected with production. We show that steady state of the production process, i.e. thermodynamic equilibrium, has a one-to-one correspondence with the absence of arbitrage possibilities. This provides an alternative defnition of the absence of arbitrage.

Roma, A. (2000). Financial and Thermodynamic Equilibrium. ECONOMIC NOTES, 29(3), 341-354 [10.1111/1468-0300.00036].

Financial and Thermodynamic Equilibrium

ROMA, ANTONIO
2000-01-01

Abstract

This paper explores general equilibrium asset pricing implications in a two-period model in which the production side explicitly describes the thermodynamic process unavoidably connected with production. We show that steady state of the production process, i.e. thermodynamic equilibrium, has a one-to-one correspondence with the absence of arbitrage possibilities. This provides an alternative defnition of the absence of arbitrage.
2000
Roma, A. (2000). Financial and Thermodynamic Equilibrium. ECONOMIC NOTES, 29(3), 341-354 [10.1111/1468-0300.00036].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11365/391274