This paper studies the indeterminacy of equilibrium allocations in an economy with spot commodity markets and incomplete futures markets for financial assets. We provide a description of the degree of indeterminacy in the case of two-period economy with an arbitrary market structure, and in the case of multiperiod economy. By the degree of indeterminacy we mean the highest dimension a of manifold contained in the set of equilibrium allocations of commodities.
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*The research was supported by the Deutsche Forschungsgemeinschaft, SFB303. The paper was written when the author was visiting the Institute for Mathematical Studies in the Social Sciences, Stanford University. I am pleased to thank David Cass for helpful remarks.