result shows the existence of a competitive equilibrium process that is stationary and has an invariant ergodic measure …

firms default. In the model, firms are assumed to be owned by a single individual whose roles as entrepreneur and consumer …. Default is thus endogenous as output determines the deliveries from the assets issued. In turn, the receipts from each asset … counter-cyclical default. We show that, under usual assumptions on utilities and technologies, an equilibrium always exists …