Search Results - subject:"Solvency constraints"

Asset prices, debt constraints and inefficiency

Bloise, Gaetano; Reichlin, Pietro - Dipartimento di Economia, Università degli Studi di Roma 3 - 2008

In this paper, we consider economies with (possibly endogenous) solvency constraints under uncertainty. Constrained ine …

Persistent link: https://ebvufind01.dmz1.zbw.eu/10005405035

Endogenous credit limits with small default costs

Azariadis, Costas; Kaas, Leo - In: Journal of Economic Theory 148 (2013) 2, pp. 806-824

We analyze an exchange economy of unsecured credit where borrowers have the option to declare bankruptcy in which case they are temporarily excluded from financial markets. Endogenous credit limits are imposed that are just tight enough to prevent default. Economies with temporary exclusion...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10010662405

Fragility of Competitive Equilibrium with Risk of Default

Bloise, Gaetano; Reichlin, Pietro; Tirelli, Mario - In: Review of Economic Dynamics 16 (2013) 2, pp. 271-295

from financial markets and endogenously determined solvency constraints prevent debt repudiation. Our analysis shows that …

Persistent link: https://ebvufind01.dmz1.zbw.eu/10010604556

Asset Prices, Debt Constraints and Inefficiency

Bloise, Gaetano; Reichlin, Pietro - C.E.P.R. Discussion Papers - 2008

In this paper, we consider economies with (possibly endogenous) solvency constraints under uncertainty. Constrained …

Persistent link: https://ebvufind01.dmz1.zbw.eu/10005662321