Incomplete financial participation: exclusive markets, investment clubs and credit risk

Víctor Pérez Fernández and Juan Pablo Torres-Martinez

MPRA Paper from University Library of Munich, Germany

Abstract: We develop a general equilibrium model with incomplete financial participation and price dependent financial constraints. In our model, equilibrium exists even when agents do not have access to all financial contracts. For instance, exclusive credit lines and investment clubs are compatible with our framework. We also extend the literature of incomplete financial participation to include debts backed by price dependent collateral, and non-ordered preferences negatively affected by the amount of default.

Keywords: Incomplete nancial participation; Exclusive credit lines; Collateralized loans (search for similar items in EconPapers)
JEL-codes: D52 D53 (search for similar items in EconPapers)
Date: 2012-01
New Economics Papers: this item is included in nep-dge
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Related works:
Working Paper: Incomplete Financial Participation: Exclusive Markets, Investment Clubs, and Credit Risk (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36624

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