General equilibrium with endogenous trading constraints

Sebastián Cea and Juan Pablo Torres-Martinez

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: In a competitive model where agents are subject to endogenous trading constraints, we make the access to financial trade dependent on prices and consumption decisions. Our framework is compatible with the existence of both credit market segmentation and market exclusion. In this context, we show equilibrium existence in two scenarios. In the first one, individuals can fully hedge the payments of segmented financial contracts by trading unsegmented assets. In the second one, it is assumed that agents may compensate with increments in present demand the losses of well-being generated by reductions of future consumption

Keywords: Incomplete Markets; General Equilibrium; Endogenous Trading Constraints (search for similar items in EconPapers)
JEL-codes: D52 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2016-07
New Economics Papers: this item is included in nep-dge and nep-mic
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ftp://mse.univ-paris1.fr/pub/mse/CES2016/16050.pdf (application/pdf)

Related works:
Journal Article: General equilibrium with endogenous trading constraints (2018)
Working Paper: General Equilibrium with Endogenous Trading Constraints (2018)
Working Paper: General Equilibrium with Endogenous Trading Constraints (2018)
Working Paper: General Equilibrium with Endogenous Trading Constraints (2018)
Working Paper: General Equilibrium with Endogenous Trading Constraints (2016)
Working Paper: General Equilibrium with Endogenous Trading Constraints (2016)
Working Paper: General Equilibrium with Endogenous Trading Constraints (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:16050

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