Artículos de revistas
Credit segmentation in general equilibrium
Fecha
2015Registro en:
Journal of Mathematical Economics 62 (2016) 19–27
0304-4068
Autor
Cea Echeñique, Sebastián
Torres Martínez, Juan Pablo
Institución
Resumen
We build a general equilibrium model with endogenous borrowing constraints compatible with credit
segmentation. There are personalized trading restrictions connecting prices with both portfolio constraints
and consumption possibilities, a setting which has not thoroughly been addressed by the literature.
Our approach is general enough to be compatible with incomplete market economies where there
exist wealth-dependent and/or investment-dependent credit access, borrowing constraints precluding
bankruptcy, or assets backed by physical collateral.
To prove equilibrium existence, we assume that both investment on segmented assets is not required
to obtain access to credit and transfers implementable in segmented markets can be super-replicated by
investing in non-segmented markets. For instance, this super-replication property is satisfied if either (i)
all individuals have access to borrow at a risk-free rate; or (ii) financial contracts make real promises in
terms of non-perishable commodities; or (iii) promises are backed by physical collateral.