Similar Search Results

Bankruptcy and Collateral in Debt Constrained Markets

Kehoe, Timothy J. - 2006

Typical models of bankruptcy and collateral rely on incomplete asset markets. In fact, bankruptcy and collateral add … and Levine (2001) can be implemented in a model with bankruptcy and collateral. The equilibrium allocation is constrained … a model with bankruptcy and collateral is fragile in the sense of Leijonhufvud's "corridor of stability," however: If …

Persistent link: https://www.econbiz.de/10012466005

A Market Based Solution to Price Externalities : A Generalized Framework

Kilenthong, Weerachart T. - 2014

Pecuniary externalities have regained the interest of researchers as they seek policy interventions and regulations to remedy externality-induced distortions, e.g., balance sheet effects, amplifiers and fire sales. In this paper we go back to first principles and show how to design financial...

Persistent link: https://www.econbiz.de/10012458391

Price Level and Inflation Dynamics in Heterogeneous Agent Economies

Kaplan, Greg; Nikolakoudis, Georgios; Violante, Giovanni L. - National Bureau of Economic Research - 2023

We study equilibria in a heterogeneous-agent incomplete-market economy with nominal government debt and flexible prices. Unlike in representative agent economies, steady-state equilibria exist when the government runs persistent deficits, provided that the level of deficits is not too large. In...

Persistent link: https://www.econbiz.de/10014322820

Money in a Heterogeneous Agent Model

Farmer, Roger E. A. - National Bureau of Economic Research - 2024

I introduce money into an incomplete markets model with heterogeneous agents and uninsurable income risk. I show that the model exhibits both non-monetary and monetary equilibria, with the latter existing when income risk is sufficiently high. Using numerical methods, I characterize the...

Persistent link: https://www.econbiz.de/10015056162

Estimation and Identification of Structural Parameters in the Presence of Multiple Equilibria

Cooper, Russell W. - 2002

This paper studies quantitative implications of model economies that exhibit multiple equilibria. The goal is to assess two interrelated issues. First, do economies with multiple equilibria have falsifiable predictions? Second, is identification possible in economies that exhibit multiple...

Persistent link: https://www.econbiz.de/10012469773

Dynamic Behavior of Imperfectly Competitive Economies with Multiple Equilibria

Cooper, Russell - 1987

This paper investigates the dynamic behavior of an economy with multiple Nash equilibria. The first part of the paper analyzes an abstract game exhibiting multiple equilibria. A history dependent selection criterion is proposed which induces correlated behavior in equilibrium even though agents...

Persistent link: https://www.econbiz.de/10012476680

Marriage Market Equilibrium

Pollak, Robert A. - 2016

The standard Beckerian analysis of marriage market equilibrium assumes that allocation within marriage implements agreements made in the marriage market. This paper investigates marriage market equilibrium when allocation within marriage is determined by bargaining in marriage and compares that...

Persistent link: https://www.econbiz.de/10012456366

Capital Structure Equilibrium under Incomplete Market Conditions

Senbet, Lemma W. - 1981

Most discussions of corporate capital structure have been set in the context of a complete capital market. In this paper we study the determinants of capital structure for the incomplete markets case, where incompleteness manifests itself in the form of divergent borrowing and lending rates. We...

Persistent link: https://www.econbiz.de/10012478368

Incomplete-Market Equilibria Solved Recursively on an Event Tree

Dumas, Bernard - 2008

We develop a method that allows one to compute incomplete-market equilibria routinely for Markovian equilibria (when they exist). The main difficulty to be overcome arises from the set of state variables. There are, of course, exogenous state variables driving the economy but, in an incomplete...

Persistent link: https://www.econbiz.de/10012464019

Markets and Housing Finance

Warnock, Veronica Cacdac - 2007

, we find that countries with stronger legal rights for borrowers and lenders (through collateral and bankruptcy laws …

Persistent link: https://www.econbiz.de/10012465573

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