Revistas Académicas WoS

Collateral avoids Ponzi schemes in incomplete markets

Without introducing either debt constraints or transversality conditions to avoid the possibility of Ponzi schemes, we show the existence of equilibrium in an infinite horizon incomplete markets economy with a collateral structure.

https://www.jstor.org/stable/3082009

Econometrica, Vol. 70, pp. 1.613 - 1.638, 2002
Autor(es): Araujo Aloisio, Páscoa Mário, Torres-Martínez Juan Pablo