General Equilibrium with Endogenous Trading Constraints

Sebastián Cea and Juan Pablo Torres-Martinez

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

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)
Date: 2016-07
New Economics Papers: this item is included in nep-mic
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01373471v1
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Published in 2016

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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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