Disaggregation of excess demand and comparative statics with incomplete markets and nominal assets

We prove that locally, Walras' law and homogeneity characterize the structu re of market excess demand functions when financial markets are incomplete and assets' returns are nominal. The method of proof is substantially diffe rent from all existing arguments as the properties of individual demand are also different. We show that this result has important implications and is part of a more general result that excess demand is an essentially arbitra ry function not just of prices, but also of the exogenous parameters of the economy as asset returns, preferences, and endowments. Thus locally the eq uilibrium manifold, relating equilibrium prices to these parameters has als o no structure.