General equilibrium with endogenous trading constraints

Sebastián Cea and Juan Pablo Torres-Martinez

PLOS ONE, 2018, vol. 13, issue 9, 1-10

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.

Date: 2018
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Citations: View citations in EconPapers (3)

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Related works:
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 (2016)
Working Paper: General Equilibrium with Endogenous Trading Constraints (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0203814

DOI: 10.1371/journal.pone.0203814

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