Gu, Chao; Mattesini, Fabrizio; Monnet, Cyril; Wright, … - In: Journal of Political Economy 121 (2013) 5, pp. 940-940
This paper studies models of credit with limited commitment and, therefore, endogenous debt limits. There are multiple stationary equilibria plus nonstationary equilibria in which credit conditions change simply because of beliefs. There can be equilibria in which debt limits display...