Header menu link for other important links
Endogenous default penalties in nominal incomplete markets
N. Gouveia,
Published in
Volume: 10
Issue: 2
Pages: 391 - 418
This paper endogeneizes the utility penalties, initiated by Dubey, Geanakoplos and Shubik (2005), by introducing a benevolent central planner choosing the value of marginal default utility penalties for each consumer. We also prove equilibrium existence with endogenous default penalties for incomplete markets with nominal assets.
About the journal
JournalAnnals of Economics and Finance