Credit Constraints in General Equilibrium: Experimental Results
نویسندگان
چکیده
منابع مشابه
Default and Credit Constraints in General Equilibrium
A recent strand of the literature convincingly demonstrates that both the sovereign default and the household default are properly explained by models in which agents face uninsurable income shocks, while being allowed to strategically default on their debt. We develop a similar model in a general equilibrium setting, and we prove that the market equilibrium features overborrowing as well as to...
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We construct a general equilibrium model with private information in which borrowers and lenders enter into long-term dynamic credit relationships. Each new generation of ex ante identical individuals is divided in equilibrium into workers and entrepreneurs. Workers save through financial intermediaries in the form of interest-bearing deposits and supply labor to entrepreneurs in a competitive ...
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This paper shows equilibrium existence for an infinite–horizon exchange economy with incomplete markets of real assets when default is allowed. Borrowers are required to constitute collateral in terms of durable goods and face credit constraints that depend on their past default. When credit constraints are inelastic, Ponzi schemes are ruled out and an equilibrium exists. JEL Classification: D5...
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ژورنال
عنوان ژورنال: The Economic Journal
سال: 1997
ISSN: 0013-0133,1468-0297
DOI: 10.1111/1468-0297.00232