Bidian, Florin; Bejan, Camelia - Volkswirtschaftliche Fakultät, … - 2011
Not-too-tight (NTT) debt limits are endogenous restrictions on debt that prevent agents from defaulting and opting for … facing some fixed prices for the Arrow securities, we prove that discounted NTT debt limits must differ by a martingale …. Discounted debt limits are submartingales/martingales under an interdiction to trade/borrow, and can be supermartingales under a …