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Collateral Avoids Ponzi Schemes in Incomplete Markets |
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| Authors: | Aloisio Araujo,Má rio Rui Pá scoa,Juan Pablo Torres– Martí nez |
| Abstract: | Without introducing either debt constraints or transversality conditions to avoid the possibility of Ponzi schemes, we show the existence of equilibrium in an infinite horizon incomplete markets economy with a collateral structure. |
| Keywords: | exogenous collateral incomplete markets infinite horizon equilibrium Ponzi schemes |