Listagem por autor "Vailakis, Yiannis"
Itens para a visualização no momento 1-14 of 14
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Borrowing in excess of natural ability to repay
2017-01The paper aims at improving our understanding of self-enforcing debt in competitive dynamic economies with lack of commitment when default induces a permanent loss of access to international credit markets. We show, by ... -
Collateral, default penalties and almost finite-time solvency
2008-03-04We argue that it is possible to adapt the approach of imposing restrictions on available plans through finitely effective debt constraints, introduced by Levine and Zame (1996), to encompass models with default and collateral. ... -
Competitive equilibria in infinite-horizon collateralized economies with default penalties
2010-03-16Araújo, Páscoa and Torres-Martinez (2002) have shown that, without imposing either debt constraints or transversality conditions, Ponzi schemes are ruled out in infinite horizon economies with default when collateral is ... -
Constrained efficiency without commitment
2015-12We consider an infinite horizon economy where agents share income risks by trading a complete set of contingent claims but cannot commit to their promises. Allocations are restricted to be self-enforcing relative to autarchic ... -
Endogenous debt constraints in collateralized economies with default penalties
2011-06-30In infinite horizon financial markets economies, competitive equilibria fail to exist if one does not impose restrictions on agents' trades that rule out Ponzi schemes. When there is limited commitment and collateral ... -
Endogenous Transaction Costs
2008-10-28The paper proposes an alternative general equilibrium formulation of financial asset economies with transactions costs. Transaction costs emerge endogenously at equilibrium and reflect agents decisions of intermediating ... -
Existence and uniqueness of a fixed-point for local contractions
2008-05-15This paper proves the existence and uniqueness of a fixed-point for local contractions without assuming the family of contraction coefficients to be uniformly bounded away from 1. More importantly it shows how this fixed-point ... -
Financial markets with endogenous transaction costs
2010-10The paper proposes an alternative general equilibrium formulation of financial asset economies with transaction costs. Transaction costs emerge endogenously at equilibrium and reflect agents' decisions of intermediating ... -
Fixed point for local contractions: applications to recursive utility
2013-03The paper shows how fixed-point results for local contractions apply to the study of the existence and uniqueness of recursive utility functions defined on subsets of + and being continuous for a specific topology. Two ... -
Harsh default penalties lead to Ponzi schemes: a counterexample
2012-05Pascoa and Seghir (2009) presented two examples to show that in the presence of utility penalties for default, collateral requirements do not always eliminate the occurrence of Ponzi schemes and equilibria may fail to ... -
On Ponzi schemes in infinite horizon collateralized economies with default penalties
2011-06-30Araujo, Páscoa and Torres-Martínez (2002) showed that, without imposing any debt constraint, Ponzi schemes are ruled out in infinite horizon economies with limited commitment when collateral is the only mechanism that ... -
On the sovereign debt paradox
2017-12Bulow and Rogoff (Am Econ Rev 79(1):43-50, 1989) show that lending to small countries cannot be supported merely on the country's 'reputation for repayment' if exclusion from future credit markets is the only consequence ... -
Self-enforcing debt limits and costly default in general equilibrium
2017-12-05We establish a novel determination of self-enforcing debt limits at the present value of default cost in a general competitive equilibrium. Agents can trade state-contingent debt but cannot commit to repay. If an agent ...
