Department: Economics.

These four essays address issues related to the incompleteness of financial markets in competitive exchange economies. The main point we try to establish is that when markets are incomplete, a wide range of economic policies have an impact on equilibrium allocations and therefore on the welfare...

Money, which provides liquidity, is distinct from debt. The introduction of a bank that issues money in exchange for debt and pays out its profit as dividend to shareholders modifies the model of overlapping generations. The set of equilibrium paths, their dynamic properties, as well as the...