We extend the standard model of general equilibrium with incomplete markets to allow for default and punishment. The … the variables, our model encompasses a broad range of moral hazard, adverse selection, and signalling phenomena (including … for asset trade. We show that more lenient punishment which encourages default may be Pareto improving because it allows …

We extend the standard model of general equilibrium with incomplete markets to allow for default and punishment by … and commodities. By reinterpreting the variables, our model encompasses a broad range of adverse selection and signalling … compute how the size of their loan or the price they quote might affect default rates. It also makes for a simple equilibrium …

We build a model of competitive pooling, which incorporates adverse selection and signalling into general equilibrium …

We build a model of competitive pooling, which incorporates adverse selection and signalling into general equilibrium …

We extend the standard model of general equilibrium with incomplete markets (GEI) to allow for default. The … equilibrating variables include aggregate default levels, as well as prices of assets and commodities. Default can be either … penalties lambda for default, and the limitations Q on its sale. The model is thus named GE(A,lambda,Q). Each asset is regarded …

Default rates on instalment loans vary with type of the good purchased. Using an Italian dataset of instalment loans … default rates across the different types of goods is due to unobserved individual heterogeneity (selection effect) or due to … more likely to default on any loan, while those buying kitchen appliances, furniture and computers are more likely to repay …

Default rates on instalment loans vary with type of the good purchased. Using an Italian dataset of instalment loans …-specific characteristics, and for the potential selection bias due to credit rationing. We explore whether the residual variation in default … motorcycles on credit are more likely to default on any loan, while those buying kitchen appliances, furniture and computers are …