In our previous paper we built a general equilibrium model of default and punishment in which equilibrium always exists … sales constraints as equilibrium signals. By specializing the default penalties and imposing an exclusivity constraint on …

We extend the standard model of general equilibrium with incomplete markets to allow for default and punishment by … compute how the size of their loan or the price they quote might affect default rates. It also makes for a simple equilibrium … equilibrium always exists in our model, and that default, in conjunction with refinement, opens the door to a theory of endogenous …

We extend the standard model of general equilibrium with incomplete markets (GEI) to allow for default. The … equilibrating variables include aggregate default levels, as well as prices of assets and commodities. Default can be either … penalties lambda for default, and the limitations Q on its sale. The model is thus named GE(A,lambda,Q). Each asset is regarded …

Default rates on instalment loans vary with type of the good purchased. Using an Italian dataset of instalment loans … default rates across the different types of goods is due to unobserved individual heterogeneity (selection effect) or due to … more likely to default on any loan, while those buying kitchen appliances, furniture and computers are more likely to repay …

Default rates on instalment loans vary with type of the good purchased. Using an Italian dataset of instalment loans …-specific characteristics, and for the potential selection bias due to credit rationing. We explore whether the residual variation in default … motorcycles on credit are more likely to default on any loan, while those buying kitchen appliances, furniture and computers are …

selection (among women) and moral hazard (predominantly among men), and the findings suggest that about 20% of default is due to …