... −wtτ(sτ)nτ(sτ)],asexpressedintermsoftime-t,history-stcon-sumption goods. Thus, the household’s wealth, or the value of all its currentand future net claims, expressed in terms of the date-t,history-stconsumptiongood ... currentposition. It is all that is needed for a planner to compute an optimal alloca-tion and it is all that is needed for the “invisible hand” to call out prices andimplement the first-best allocation as a ... demonstrated how to obtain a recursive formulationof the equilibrium with sequential trading. This required us to assume thatindividuals’ endowments were governed by a Markov process. Under that as-sumption...