Title

An overlapping generations model with a general default punishment structure

Author's Department

Economics Department

Document Type

Research Article

Publication Title

International Research Journal of Finance and Economics

Publication Date

8-24-2010

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.

First Page

10

Last Page

25

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