Search Results - subject:"Limited commitment"

Stationary equilibrium distributions in economies with limited commitment

Broer, Tobias - Department of Economics, European University Institute - 2009

Limited commitment to contracts can explain imperfect risk sharing even when individuals have access to complete … asymmetric nature of partial insurance under limited commitment, where negative income shocks are largely insured but positive … limited commitment continuum economy where incomes follow a standard markov process, and solves analytically for the joint …

Persistent link: https://www.econbiz.de/10008558917

Borrowing Constraint as an Optimal Contract

Grochulski, Borys; Zhang, Yuzhe - Volkswirtschaftliche Fakultät, … - 2009

We study a continuous-time version of the optimal risk-sharing problem with one-sided commitment. In the optimal contract, the agent's consumption is non-decreasing and depends only on the maximal level of the agent's income realized to date. In the complete-markets implementation of the optimal...

Persistent link: https://www.econbiz.de/10008568360

Optimal Lending Contracts with Asymmetric Information and Two-sided Limited Commitment or Impatient Entrepreneur

Li, Shuyun May - Department of Economics, Faculty of Business and Economics - 2009

assumes the bank has limited commitment. The optimal lending contracts under each variation closely resemble each other. …

Persistent link: https://www.econbiz.de/10008496357

Optimal Lending Contracts with Long Run Borrowing Constraints

Li, Shuyun May - Department of Economics, Faculty of Business and Economics - 2009

assumes the bank has limited commitment. The optimal lending contracts under each variation closely resemble each other. …

Persistent link: https://www.econbiz.de/10010903419

Money and Credit With Limited Commitment and Theft

Williamson, Stephen; Sanches, Daniel - Volkswirtschaftliche Fakultät, … - 2009

We study the interplay among imperfect memory, limited commitment, and theft, in an environment that can support … provides lucrative opportunities for thieves. Limited commitment constrains credit arrangements, and the constraints tend to …

Persistent link: https://www.econbiz.de/10008636471

Bankruptcy Law and Corporate Investment Decisions

Tarantino, E.T. - Tilburg University, Center for Economic Research - 2009

This paper contributes to the debate on optimal bankruptcy reform by providing a set of results that challenge the wisdom that "soft" bankruptcy codes have necessarily positive effects. The model hinges on the key idea that "soft" bankruptcy allows a poor performing entrepreneur to renegotiate...

Persistent link: https://www.econbiz.de/10011092005