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The structure of competitive equilibrium with unsecured debt
Bloise, Gaetano - Dipartimento di Economia, Università degli Studi di Roma 3 - 2013
I provide a complete characterization of equilibrium with risk of default in sequential economies under uncertainty …. Default induces permanent exclusion from financial markets and not-too-tight solvency constraints prevent debt repudiation at …
Persistent link: https://www.econbiz.de/10010723492
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Fragility of Competitive Equilibrium with Risk of Default
Bloise, Gaetano; Reichlin, Pietro; Tirelli, Mario - In: Review of Economic Dynamics 16 (2013) 2, pp. 271-295
We study competitive equilibrium in sequential economies under limited commitment. Default induces permanent exclusion …
Persistent link: https://www.econbiz.de/10010604556
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Indeterminacy of Competitive Equilibrium with Risk of Default
Bloise, Gaetano; Reichlin, Pietro; Tirelli, Mario - C.E.P.R. Discussion Papers - 2009
We prove indeterminacy of competitive equilibrium in sequential economies, where limited commitment requires the endogenous determination of solvency constraints preventing debt repudiation (Alvarez and Jermann (2000)). In particular, we show that, for any arbitrary value of social welfare in...
Persistent link: https://www.econbiz.de/10008566321
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Introduction to general equilibrium
Balasko, Yves; Geanakoplos, John - In: Journal of Economic Theory 147 (2012) 2, pp. 400-406
This introduces the symposium on general equilibrium.
Persistent link: https://www.econbiz.de/10010572387
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Bankruptcy and Collateral in Debt Constrained Markets
Kehoe, Timothy J.; Levine, David - National Bureau of Economic Research (NBER) - 2006
Typical models of bankruptcy and collateral rely on incomplete asset markets. In fact, bankruptcy and collateral add contingencies to asset markets. In some models, these contingencies can be used by consumers to achieve the same equilibrium allocations as in models with complete markets. In...
Persistent link: https://www.econbiz.de/10005061561
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A characterization of inefficiency in stochastic overlapping generations economies
BLOISE, Gaetano; CALCIANO, Filippo L. - Center for Operations Research and Econometrics (CORE), … - 2007
In this paper, we provide a characterization of interim inefficiency in stochastic economies ofoverlapping generations under possibly sequentially incomplete markets. With respect to the established body of results in the literature, we remove the hypothesis of two-period horizons,by considering...
Persistent link: https://www.econbiz.de/10005065350
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Debt-Deflation versus the Liquidity Trap: The Dilemma of Nonconventional Monetary Policy.
Giraud, Gaël; Pottier, Antonin - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2012
backed by collateral, the value of which depends on monetary policy. The decision to default is endogenous and depends on the … of monetary policy highlights the default channel affecting trades and production, and provides a rigorous foundation to …
Persistent link: https://www.econbiz.de/10010711866
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Capital Ownership under Market Incompleteness: Does it matter?
Carceles-Poveda, Eva - Society for Computational Economics - SCE - 2003
Persistent link: https://www.econbiz.de/10005345704
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Asset Prices and Business Cycles under Market Incompleteness
Carceles-Poveda, Eva - In: Review of Economic Dynamics 12 (2009) 3, pp. 405-422
In this paper, we study the quantitative implications of a real business cycle model where the firm is the capital owner, households are heterogeneous, and markets are incomplete due to restricted asset trade. Since, under these assumptions, the usual firm objective is no longer well defined,...
Persistent link: https://www.econbiz.de/10004991317
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Endogenous Trading Constraints with Incomplete Asset Markets
Poveda, Eva Carceles; Abraham, Arpad - Society for Economic Dynamics - SED - 2004
The present project introduces the possibility of default on the trading contracts in an infinite horizon incomplete … from the default period on. Further, to avoid this happening in equilibrium, the trading limits are endogenously determined … objectives are to quantify and characterize the endogenous limits resulting from the option of default and to study their real …
Persistent link: https://www.econbiz.de/10005051440