Bassetto, Marco; galli, carlo - 2017
("government debt") after observing an idiosyncratic signal about the prospects of default. While second-period buyers only need to … forecast default, first-period buyers pass the asset to the new agents in the secondary market, and thus need to form beliefs …-period agents makes the price of debt more resilient to bad shocks not only in the last period, but in the first one as well. We use …