A multiperiod Drèze rule

The purpose of this paper is to extend the concept of a Drèze equilibrium to multi-period production economies with incomplete markets. Constrained efficiency cannot serve as a basis for such an extension, because multi-period models tend to violate even weak constrained efficiency requirements. Examples illustrate how the difficulties that arise in the case of sequential trade can be taken into account. Finally, the concept of minimal efficiency, which has been introduced by Dierker et al. (2005) in a two-period model, provides a way to derive an extension of the Drèze rule to finite trees. This is possible because minimal efficiency relies on a planner who can choose the production plan, but who cannot interfere with future consumption otherwise. (author's abstract)