INCOMPLETE MARKETS, CONTINUUM OF STATES AND DEFAULT

Authors
ARAUJO A MONTEIRO PK PASCOA MR
Citation
A. Araujo et al., INCOMPLETE MARKETS, CONTINUUM OF STATES AND DEFAULT, Economic theory, 11(1), 1998, pp. 205-213
Citations number
11
Categorie Soggetti
Economics
Journal title
Economic theory → ACNP
ISSN journal
09382259
Volume
11
Issue
1
Year of publication
1998
Pages
205 - 213
Database
ISI
SICI code
0938-2259(1998)11:1<205:IMCOSA>2.0.ZU;2-D
Abstract
We show that when bankruptcy, subject to penalties, is allowed, it is possible to prove the existence of equilibrium in a model with a conti nuum of states without imposing any assumptions on ex-post endowments.