Harsh default penalties lead to Ponzi schemes
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Publication:1002339
DOI10.1016/j.geb.2007.10.002zbMath1156.91427OpenAlexW2162815562MaRDI QIDQ1002339
Abdelkrim Seghir, Mario Rui Pascoa
Publication date: 25 February 2009
Published in: Games and Economic Behavior (Search for Journal in Brave)
Full work available at URL: https://doi.org/10.1016/j.geb.2007.10.002
Related Items (12)
Prices and investment with collateral and default ⋮ Equilibrium with limited-recourse collateralized loans ⋮ Harsh default penalties lead to Ponzi schemes: a counterexample ⋮ Endogenous debt constraints in collateralized economies with default penalties ⋮ Recourse loans and Ponzi schemes ⋮ On Ponzi schemes in infinite horizon collateralized economies with default penalties ⋮ Equilibrium in collateralized asset markets: credit contractions and negative equity loans ⋮ Wealth transfers and the role of collateral when lifetimes are uncertain ⋮ Behavioral arbitrage with collateral and uncertain deliveries ⋮ Financial segmentation and collateralized debt in infinite-horizon economies ⋮ Determination of general equilibrium with incomplete markets and default penalties ⋮ The impossibility of effective enforcement mechanisms in collateralized credit markets
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- Default and Punishment in General Equilibrium1
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