environment. Recent researches have also often neglected the role of debt constraints. The paper develops and numerically solves a … dynamic stochastic farm household model with occasionally binding debt constraints and investment adjustment costs. The …

environment. Recent researches have also often neglected the role of debt constraints. The paper develops and numerically solves a … dynamic stochastic farm household model with occasionally binding debt constraints and investment adjustment costs. The …

possibility of asset price bubbles under endogenous debt constraints induced by limited enforcement of debt repayment. Equilibria … with endogenous debt constraints are prone to have infinite present value of total resources. We show that asset price …

only if each agent has binding debt constraints at some node of her life span. That is, contrary to what might be expected …, in the absence of a very productive financial market, frictions induced by debt constraints create some room for …

only if each agent has binding debt constraints at some node of her life span. That is, contrary to what might be expected …, in the absence of a very productive financial market, frictions induced by debt constraints create some room for …

The objective of the paper is to propose endogenous debt constraints that rule out Ponzi schemes and ensure the … finitely effective debt constraints, introduced by Levine and Zame (1996) (see also Levine and Zame (2002)), to encompass …