Martins-da-Rocha, Victor Filipe; Vailakis, Y. - FGV/EPGE Escola Brasileira de Economia e Finanças, … - 2010
Araújo, Páscoa and Torres-Martinez (2002) have shown that, without imposing either debt constraints or transversality conditions, Ponzi schemes are ruled out in infinite horizon economies with default when collateral is the only mechanism that partially secures loans. Páscoa and Seghir (2008)...