Real Determinacy, Financial Markets and Default

Araújo, Aloísio; Páscoa, Mário Rui

http://hdl.handle.net/10362/87933

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Autores

Araújo, Aloísio

Páscoa, Mário Rui

Resumo(s)

In incomplete financial markets with finitely many states, default precludes the occurrence of Walras law and, for a nonlinear rule of partition of defaulters' estates, there may be fewer redundant equilirium equations, compensating for the lack of homogeneity of demand in second period commodity prices. We establish the real determinacy of equilibria for an open set of parameters where in every state some agents default in equilibrium.

URI

http://hdl.handle.net/10362/87933

Citação

Araújo, Aloísio and Páscoa, Mário Rui, Real Determinacy, Financial Markets and Default (1995). FEUNL Working Paper Series No. 249

Editora

Nova SBE

Coleções

NSBE - Working Paper Series

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