Search Results - subject:"Limited commitment"

Risk Sharing through Financial Markets with Endogenous Enforcement of Trades

Koeppl, Thorsten V. - Econometric Society - 2004

When people share risk in financial markets, intermediaries provide costly enforcement for most trades and, hence, are an integral part of financial markets' organization. We assess the degree of risk sharing that can be achieved through financial markets when enforcement is based on the threat...

Persistent link: https://www.econbiz.de/10005129807

Risk Sharing through Financial Markets with Endogenous Enforcement of Trades

Koeppl, Thorsten - 2004

Persistent link: https://www.econbiz.de/10011940666

Differentiability of the Efficient Frontier when Commitment to Risk Sharing is Limited

Koeppl, Thorsten - 2004

This paper shows that the value function describing efficient risk sharing with limited commitment is not necessarily …

Persistent link: https://www.econbiz.de/10011940667

Risk sharing through financial markets with endogenous enforcement of trades

Koeppl, Thorsten Volker - 2004

When people share risk in financial markets, intermediaries provide costly enforcement for most trades and, hence, are an integral part of financial markets’ organization. We assess the degree of risk sharing that can be achieved through financial markets when enforcement is based on the...

Persistent link: https://www.econbiz.de/10011604365

International Capital Flows with Limited Commitment and Incomplete Markets

von Hagen, Jürgen; Zhang, Haiping - C.E.P.R. Discussion Papers - 2012

Recent literature has proposed two alternative types of financial frictions, i.e., limited commitment and incomplete … facilitate a direct comparison of their effects. In our model, limited commitment distorts the investment made by agents with …

Persistent link: https://www.econbiz.de/10011084189

Escaping expectation traps : how much commitment is required?

Himmels, Christoph; Kirsanova, Tatiana - 2012

Persistent link: https://www.econbiz.de/10009659371

Imperfect interbank markets and the lender of last resort

Matsuoka, Tarishi - In: Journal of economic dynamics & control 36 (2012) 11, pp. 1673-1687

Persistent link: https://www.econbiz.de/10009701941

Imperfect interbank markets and the lender of last resort

Matsuoka, Tarishi - In: Journal of Economic Dynamics and Control 36 (2012) 11, pp. 1673-1687

This paper presents a monetary model in which interbank markets have limited commitment to contracts. Limited … commitment reduces the proportion of assets that can be used as collateral, and thus banks with high liquidity demands face …

Persistent link: https://www.econbiz.de/10010594912

Legal Enforcement, Default and Heterogeneity of Project Financing Contracts

Madeira, Gabriel de Abreu - Departamento de Economia, Faculdade de Economia, … - 2012

and contract literatures: limited commitment, which encapsulates the idea that contract enforcement is imperfect, and … courts may be optimal, which differs from most limited commitment models, where punishments are just threats, never applied …

Persistent link: https://www.econbiz.de/10010604628

Endogenous debt constraints in collateralized economies with default penalties

Martins-da-Rocha, V. Filipe; Vailakis, Yiannis - In: Journal of Mathematical Economics 48 (2012) 1, pp. 1-13

existence of equilibria in a model with limited commitment and (possible) default. We appropriately modify the definition of … models with limited commitment, default penalties and collateral. Along this line, we introduce in the setting of Araujo et …

Persistent link: https://www.econbiz.de/10011065448