Abstract. In a stochastic financial exchange economy, two financial structures are equivalent
if, for each given state price, the marketable payoffs are identical for the associated asset
prices. The key property of two equivalent financial structures is that, when associated with
any standard exchange economy, they lead to the same financial equilibrium. We exhibit a
sufficient condition for the equivalence of two financial structures without re-trading with
possibly long-term assets.We then apply this result to financial structures built upon primitive
assets and their re-trading.We also borrow an assumption from Bonnisseau and Chéry (Ann
Financ 10:523–552, 2014) to prove the equivalence between a financial structure and its
reduced forms.
Keywords Equivalent financial structures · Financial equilibrium · Multi-period model ·
Long-term assets · Financial sub-structure · Reduced forms
JEL Classification D5 · D4 · G1
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