A NOTE ON THE NONEXISTENCE OF A RATIONING EQUILIBRIUM IN THE BESANKO-THAKOR MODEL

Authors
CLEMENZ G
Citation
G. Clemenz, A NOTE ON THE NONEXISTENCE OF A RATIONING EQUILIBRIUM IN THE BESANKO-THAKOR MODEL, International economic review, 34(3), 1993, pp. 727-737
Citations number
13
Categorie Soggetti
Economics
Journal title
International economic review → ACNP
ISSN journal
00206598
Volume
34
Issue
3
Year of publication
1993
Pages
727 - 737
Database
ISI
SICI code
0020-6598(1993)34:3<727:ANOTNO>2.0.ZU;2-8
Abstract
It is shown that in a credit market with two types of borrowers, disti nguished only through their not commonly known probability of default, and with a perfectly elastic supply of deposits, a pair of contracts with random rationing of less risky loan applicants cannot be a Nash-e quilibrium.