  We study a pure-exchange incomplete-market economy with heterogeneous agents.
In each period, the agents choose how much to save (i.e., invest in a risk-free
bond), how much to consume, and which bundle of goods to consume while their
endowments are fluctuating. We focus on a competitive stationary equilibrium
(CSE) in which the wealth distribution is invariant, the agents maximize their
expected discounted utility, and both the prices of consumption goods and the
interest rate are market-clearing. Our main contribution is to extend some
general equilibrium results to an incomplete-market Bewley-type economy with
many consumption goods. Under mild conditions on the agents' preferences, we
show that the aggregate demand for goods depends only on their relative prices
and that the aggregate demand for savings is homogeneous of degree in prices,
and we prove the existence of a CSE. When the agents' preferences can be
represented by a CES (constant elasticity of substitution) utility function
with an elasticity of substitution that is higher than or equal to one, we
prove that the CSE is unique. Under the same preferences, we show that a higher
inequality of endowments does not change the equilibrium prices of goods, and
decreases the equilibrium interest rate. Our results shed light on the impact
of market incompleteness on the properties of general equilibrium models.
