Borovicka, JaroslavStachurski, John2024-01-120022-0531http://hdl.handle.net/1885/311372We obtain an exact necessary and sufficient condition for the existence and uniqueness of equilibrium asset prices in infinite horizon, discrete-time, arbitrage free environments. Using local spectral radius methods, we connect the condition, and hence the problem of existence and uniqueness of asset prices, with the recent literature on stochastic discount factor decompositions. Our results include a globally convergent method for computing prices whenever they exist. Convergence of this iterative method itself implies both existence and uniqueness of equilibrium asset prices.Financial support from ARC grant FT160100423 and Alfred P. Sloan Foundation grant G-2016-7052 is also gratefully acknowledged.application/pdfen-AU© 2021 Elsevier Inc.Asset pricingEquilibrium pricesSpectral methods202110.1016/j.jet.2021.1052272022-09-25