Credit segmentation in general equilibrium

Sebastián Cea and Juan Pablo Torres-Martinez

Journal of Mathematical Economics, 2016, vol. 62, issue C, 19-27

Abstract: We build a general equilibrium model with endogenous borrowing constraints compatible with credit segmentation. There are personalized trading restrictions connecting prices with both portfolio constraints and consumption possibilities, a setting which has not thoroughly been addressed by the literature. Our approach is general enough to be compatible with incomplete market economies where there exist wealth-dependent and/or investment-dependent credit access, borrowing constraints precluding bankruptcy, or assets backed by physical collateral.

Keywords: Incomplete markets; General equilibrium; Endogenous trading constraints (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (10)

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Related works:
Working Paper: Credit segmentation in general equilibrium (2016)
Working Paper: Credit segmentation in general equilibrium (2016)
Working Paper: Credit segmentation in general equilibrium (2016)
Working Paper: Credit segmentation in general equilibrium (2015)
Working Paper: Credit segmentation in general equilibrium (2015)
Working Paper: Credit segmentation in general equilibrium (2015)
Working Paper: Credit segmentation in general equilibrium (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:62:y:2016:i:c:p:19-27

DOI: 10.1016/j.jmateco.2015.10.011

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