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An overlapping generations model with a general default punishment structure
Published in
2010
Volume: 45
   
Pages: 10 - 25
Abstract
This paper addresses the existence of a refined equilibrium for an overlapping generations pure-exchange economy with non-ordered preferences and incomplete markets of numeraire assets when borrowers can default on their promises. More precisely, we prove that the standard model of a two-period economy with numeraire-incomplete financial markets can be extended to an infinite-horizon economy with a dynamic demographic structure encompassing the possibility of default and a general preferences structure. © EuroJournals Publishing, Inc. 2010.
About the journal
JournalInternational Research Journal of Finance and Economics
ISSN14502887