Competitive Equilibria With Incomplete Markets and Endogenous Bankruptcy

Tarun Sabarwal ()

The B.E. Journal of Theoretical Economics, 2003, vol. contributions.3, issue 1, pages 1

Abstract:

This paper constructs a model of an exchange economy in which bankruptcy arises in a manner similar to what we observe. Compared to related models, this model is a more realistic representation of some markets in which intertemporal assets are traded. Using standard and natural assumptions, it is shown that every economy represented by this model has an equilibrium. Therefore, bankruptcy can co-exist with smoothly functioning competitive markets in fairly general economies. Examples highlight some welfare effects of bankruptcy.

Keywords: Bankruptcy; General Equilibrium; Incomplete Markets; Exemption; Credit Limit (search for similar items in EconPapers)
JEL-codes: C62 D41 D50 D52 D61 D80 (search for similar items in EconPapers)
Date: 2003
References: View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.bepress.com/cgi/viewcontent.cgi?article=1060&context=bejte (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bpj:bejtec:v:contributions.3:y:2003:i:1:n:1

Access Statistics for this article

More articles in The B.E. Journal of Theoretical Economics from Berkeley Electronic Press
Series data maintained by Nickolas Zeibig-Kichas ().