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Dynamic Efficiency, the Riskless Rate and Debt Ponzi Games Under Uncertainty
Blanchard, Olivier J.; Weil, Philippe - 2003
In a dynamically efficienct economy, can a government roll its debt forever and avoid the need to raise taxes? In a …
Persistent link: https://www.econbiz.de/10014123113
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Money and Production, and Liquidity Trap
Geanakoplos, John; Dubey, Pradeep K. - 2006
We prove the existence of monetary equilibrium in a finite horizon economy with production. We also show that if agents expect the monetary authority to significantly decrease the supply of bank money available for short term loans in the future, then the economy will fall into a liquidity trap...
Persistent link: https://www.econbiz.de/10014056773
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Money and Production, and Liquidity Trap
Dubey, Pradeep; Geanakoplos, John - Cowles Foundation for Research in Economics, Yale University - 2006
We prove the existence of monetary equilibrium in a finite horizon economy with production. We also show that if agents expect the monetary authority to significantly decrease the supply of bank money available for short term loans in the future, then the economy will fall into a liquidity trap...
Persistent link: https://www.econbiz.de/10005762579
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Three Exchange Rate Regimes and a Monetary Union: Determinacy, Currency Crises, and Welfare.
Nielsen, C.K. - 2001
We study three dfferent exchange rate regimes in a stochastic OLG model with free capital mobility and incomplete markets. The regimes are characterized by the type of coordinated seignorage financed transfer (orfiscal) policy in place. We are especially interested in how the differenttypes of...
Persistent link: https://www.econbiz.de/10005774261
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Efficiency Properties of Rational Expectations Equilibria with Asymmetric Information
Gottardi, Piero; Rahi, Rohit - C.E.P.R. Discussion Papers - 2001
asymmetrically informed agents, treating symmetric information as a limiting case. Trade takes place in asset markets that may or may …
Persistent link: https://www.econbiz.de/10005136439
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Pareto improving price regulation when the asset market is incomplete
HERINGS, Jean-Jacques; POLEMARCHAKIS, Heracles - Center for Operations Research and Econometrics (CORE), … - 1998
The asset market is incomplete. Fix-price equilibria exist. Price regulation Pareto improves on a competitive …
Persistent link: https://www.econbiz.de/10005065356
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Incomplete Markets, Transitory Shocks, and Welfare
Kubler, Felix; Schmedders, Karl - In: Review of Economic Dynamics 4 (2001) 4, pp. 747-766
Although equilibrium allocations in models with incomplete markets are generally not Pareto-efficient, it is often argued that quantitative welfare losses from missing assets are small when time horizons are long and shocks are transitory. In this paper, we use a computational analysis to show...
Persistent link: https://www.econbiz.de/10005090957
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Pareto Improving Price Regulation When the Asset Market Is Incomplete
Herings, P. Jean-Jacques; Polemarchakis, Heracles M. - Cowles Foundation for Research in Economics, Yale University - 1999
When the asset market is incomplete, competitive equilibria are constrained suboptimal, which provides a scope for … rationing are taken into account. An appealing aspect of price regulation is that it that it operates anonymously on market … an incomplete asset market that is out of equilibrium. Arbitrage opportunities may arise: with three or more assets …
Persistent link: https://www.econbiz.de/10005093927
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Equilibrium and arbitrage in incomplete asset markets with fixed prices.
HERINGS, Jean-Jacques; POLEMARCHAKIS, Heracles - Center for Operations Research and Econometrics (CORE), … - 2000
At arbitrary prices of commodities and assets, fix-price equilibria exist under weak assumptions: endowments need not satisfy an interiority condition, utility functions need only satisfy very weak monotonicity requirement, and the asset return matrix allows for redundant assets. Prices of...
Persistent link: https://www.econbiz.de/10005042922
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The relevance of extrinsic uncertainty
POLEMARCHAKIS, Heracles; VENTURA, Luigi - Center for Operations Research and Econometrics (CORE), … - 1995
only objects of exchange are assets for the contingent delivery of commodities; and the asset market is incomplete. The … the economy with a complete asset market may well have a globally unique competitive eqUilibrium. Inoperative spot markets …
Persistent link: https://www.econbiz.de/10005043446