Download This PaperBankruptcy in General Equilibrium
43 Pages Posted: 7 May 2019
There are 2 versions of this paper
Date Written: September 19, 2000
Abstract
In this paper, I construct a model of an exchange economy in which bankruptcy arises in a manner similar to what we observe. This model is a more realistic representation of some markets in which intertemporal assets are traded. Using standard and natural assumptions, I show that every economy represented by this model has an equilibrium. Using examples, I highlight some welfare effects of bankruptcy.
Keywords: Bankruptcy, General Equilibrium, Incomplete Markets, Exemption, Credit Limit
JEL Classification: C62, D41, D50, D52, D61, D80
Suggested Citation: Suggested Citation
Sabarwal, Tarun, Bankruptcy in General Equilibrium (September 19, 2000). Available at SSRN: https://ssrn.com/abstract=3367875 or http://dx.doi.org/10.2139/ssrn.3367875
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