Collateral, default penalties and infinite horizon equilibrium
Pascoa and Seghir (2009) noticed that when collateralized promises become subject to utility penalties on default, Ponzi schemes may occur. However, equilibrium exists in some interesting cases. Under low penalties, equilibrium exists if the collateral does not yield utility (for example, when it is...
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| Formato: | workingPaper |
| Idioma: | eng |
| Publicado em: |
2014
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| Texto completo: | http://hdl.handle.net/10362/11157 |
| País: | Portugal |
| Oai: | oai:run.unl.pt:10362/11157 |