Browsing Congressos / RP by Author "Martins-da-Rocha, Victor Filipe"
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Self-enforcing debt limits and costly default in general equilibrium
Martins-da-Rocha, Victor Filipe; Phan, Toan; Vailakis, Yiannis
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 ...


