) classical existence Theorem for nominal assets. Namely, we showed that existence of equilibrium was characterized by the … same characteristic property for numeraire asset markets, and, thus, extend Geanakoplos-Polemarchakis' (1986) existence …

financed by voluntary contributions (subscriptions) of households. We prove existence and generic regularity of subscription …

Introducing default and limited collateral into general equilibrium theory (GE) allows for a theory of endogenous … asset may default, its drop in price may be much greater than its objective drop in value because the drop in value reduces … information also shortens the horizon over which the asset might default, its price falls still further because the margin …

The possibility of default limits available liquidity. If the potential default draws nearer, a liquidity crisis may … ensue, causing a crash in asset prices, even if the probability of default barely changes, and even if no defaults … subsequently materialize. Introducing default and limited collateral into general equilibrium theory (GE) allows for a theory of …

, securitization and default is contructed in order to explain the2007-2009 U.S. financial crisis. The equilibrium outcome is … characterized by a contagion phenomenonthat commences with increased default in the mortgage sector, and then spreads to the rest of … (default) losses without taking a toll on the taxpayer; margin requirements prevent excess leverage in the housing and …