Working Paper
Bankruptcy in general equilibrium
Abstract: In this paper, I construct a model of an exchange economy in which bankruptcy arises in a manner similar to what we observe. This model is a more realistic representation of some markets in which intertemporal assets are traded. Using standard and natural assumptions, I show that every economy represented by this model has an equilibrium. Using examples, I highlight some welfare effects of bankruptcy.
Keywords: Bankruptcy; Econometric models;
Access Documents
File(s): File format is text/html http://www.federalreserve.gov/pubs/feds/2000/200048/200048abs.html
File(s): File format is application/pdf http://www.federalreserve.gov/pubs/feds/2000/200048/200048pap.pdf
Authors
Bibliographic Information
Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: Finance and Economics Discussion Series
Publication Date: 2000
Number: 2000-48