Rational expectations equilibria in sequence economies with symmetric information: The two-period case

This paper proves the existence and upper hemi-continuity of rational expectations equilibria in two-period sequence economies with symmetric information when the state space is uncountable. The argument involves a closed-graph property of the relation linking first-period allocations to support prices that can be rationalized by expectations of state-contingent, second-period prices corresponding to some temporary equilibrium for the given first-period allocation.