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General Equilibrium with Endogenous Trading Constraints

Cea-Echenique, Sebastián; Torres-Martínez, Juan Pablo - 2014

We build a general equilibrium model where agents are subject to endogenous trading constraints, making the access to financial trade dependent on prices and consumption decisions. Besides, our framework is compatible with the existence of endogenous financial segmentation and credit markets'...

Persistent link: https://www.econbiz.de/10015242134

Huggett Economies with Multiple Stationary Equilibria

Toda, Alexis Akira - 2017

I obtain a closed-form solution to a Huggett economy with CARA utility when the vector of individual state variables follows a VAR(1) process with an arbitrary shock distribution. The stationary equilibrium is unique if the income process is AR(1), but not necessarily so otherwise. With Gaussian...

Persistent link: https://www.econbiz.de/10015256002

Fiancial Innovation, Structuring and Risk Transfer

Vanini, Paolo - 2012

Cycle, Pricing and Hedging Discount Factors and No Arbitrage Investment: Rule Bases, Alpha, Beta, View and Trade, Fund … Industry, Portfolio Theory Swaps and Financial Markets: IRS, TRS, ALM, ISDA Retail Structured Products Real Estate Asset Class …

Persistent link: https://www.econbiz.de/10015234562

A Note on the Two-fund Separation Theorem

Wenzelburger, Jan - 2008

This note contains two remarks on the traditional capital asset pricing model (CAPM) with one risk-free asset. Firstly, an elementary proof of the two-fund separation theorem is provided showing that asset-demand may become undefined if the limiting slope of the investor's indifference curves is...

Persistent link: https://www.econbiz.de/10015256863

Dividend taxation in an infinite-horizon general equilibrium model

Pham, Ngoc-Sang - 2017

We consider an infinite-horizon general equilibrium model with heterogeneous agents and financial market imperfections. We investigate the role of dividend taxation on economic growth and asset price. The optimal dividend taxation is also studied.

Persistent link: https://www.econbiz.de/10015257034

Monetary-Fiscal Forward Guidance

Kopiec, Paweł - 2024

When central banks announce cuts to future interest rates, the expected costs of government debt service decrease, generating additional resources in future budgets. This paper demonstrates that if the rational-expectations assumption is dropped, fiscal authority can exploit those gains by...

Persistent link: https://www.econbiz.de/10015213307

New Economics

Obregon, Carlos - 2020

economic theory. The main problem of traditional economy is that it has not taken seriously the need to explore the … themselves, have perniciously enter into microeconomics, macroeconomics and economic growth theory. And as a consequence we do … economic theory. The main purpose of this manuscript is to delineate the route towards the consolidation of such a new theory. …

Persistent link: https://www.econbiz.de/10015214327

The Imperfections of Conditional Programs and the Case for Universal Basic Income

Guimarães, Luis; Lourenço, Diogo - 2024

How costly are the imperfections of conditional welfare programs? Should we replace these programs with a Universal Basic Income (UBI)? We answer these questions using a general equilibrium model with incomplete markets, accounting for three overlooked imperfections of real-life conditional...

Persistent link: https://www.econbiz.de/10015214826

The theoretical aspect of Muhammad Yunus’s dream-'putting poverty in museums'

Zaman, Md Monowaruz - 2007

Poverty is an irrevocable curse of our existing institutional structure and a grey area of existing economic theories. The micro-credit can support a mere semi-subsistence economic structure since its targets are those poor people who are dependent on borrowings for their subsistence. The...

Persistent link: https://www.econbiz.de/10015215063

The impossibility of effective enforcement mechanisms in collateralized credit markets

Ferreira, Thiago Revil T.; Torres-Martínez, Juan Pablo - 2009

collateral requirements. Thus, by non-arbitrage, they lend more than the value of these guarantees. In turn, in the absence of …

Persistent link: https://www.econbiz.de/10015215895