agents. However, with genuine uncertainty in the endowments and with convex marginal utilities, no interior equilibrium can …We argue that even when macroeconomic variables are constant, underlying microeconomic uncertainty and borrowing … interest rate is strictly positive, then typically there will not exist an equilibrium with a stationary wealth distribution …

We extend the standard model of general equilibrium with incomplete markets to allow for default and punishment by … phenomena in a perfectly competitive, general equilibrium framework. Perfect competition eliminates the need for lenders to … compute how the size of their loan or the price they quote might affect default rates. It also makes for a simple equilibrium …

We extend the standard model of general equilibrium with incomplete markets to allow for default and punishment. The … the Akerlof lemons model and Rothschild-Stiglitz insurance model) in a general equilibrium framework. We impose a … theory. Despite earlier claims about the nonexistence of equilibrium with adverse selection, we show that equilibrium always …

We extend the standard model of general equilibrium with incomplete markets to allow for default and punishment by … phenomena in a perfectly competitive, general equilibrium framework. Perfect competition eliminates the need for lenders to … compute how the size of their loan or the price they quote might affect default rates. It also makes for a simple equilibrium …

We extend the standard model of general equilibrium with incomplete markets to allow for default and punishment by … phenomena in a perfectly competitive, general equilibrium framework. Perfect competition eliminates the need for lenders to … compute how the size of their loan or the price they quote might affect default rates. It also makes for a simple equilibrium …

We extend the standard model of general equilibrium with incomplete markets to allow for default and punishment by … phenomena (including the Rothschild-Stiglitz insurance model) in a general equilibrium framework. In contrast to game … their loan or the price they quote might affect default rates. The equilibrium refinement we propose, in order to rule out …

agents. However, with genuine uncertainty in the endowments and with convex marginal utilities, no interior equilibrium can …We argue that even when macroeconomic variables are constant, underlying microeconomic uncertainty and borrowing … interest rate is strictly positive, then typically there will not exist an equilibrium with a stationary wealth distribution …