Incomplete markets, continuum of states and default

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Abstract

We show that when bankruptcy, subject to penalties, is allowed, it is possible to prove the existence of equilibrium in a model with a continuum of states without imposing any assumptions on ex-post endowments.

Original languageEnglish
Pages (from-to)205-213
Number of pages9
JournalEconomic Theory
Volume11
Issue number1
DOIs
Publication statusPublished - 1 Dec 1998

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