Showing 1 - 3 of 3
Persistent link: https://www.econbiz.de/10005051397
Alvarez and Jermann (2000) show that the constrained efficient allocations of endowment economies with complete markets and limited commitment can be decentralized with endogenous borrowing limits on the Arrow securities. In a model with capital accumulation, aggregate risk and competitive...
Persistent link: https://www.econbiz.de/10005342884
This paper studies a production economy with aggregate uncertainty where consumers have limited commitment on their financial liabilities. Markets are endogenously incomplete due to the fact that the borrowing constraints are determined endogenously. We first show that, if competitive financial...
Persistent link: https://www.econbiz.de/10008836651