This paper explores the role of portfolio constraints in generating multiplicity of equilibrium. We present a simple … constraint is binding may emerge. We show further that with portfolio constraints cum incomplete markets, there may be a …

This paper explores the role of portfolio constraints in generating multiplicity of equilibrium. We present a simple …

This paper explores the role of portfolio constraints in generating multiplicity of equilibrium. We present a simple … constraint is binding may emerge. We show further that with portfolio constraints cum incomplete markets, there may be a …

-Periphery dynamic equilibrium model in which agents in the Centre country face portfolio constraints. In our model, international … additional channel reflecting the tightness of the portfolio constraints. Portfolio constraints are shown to generate endogenous …