Arbeitspapier
Welfare-improving debt constraints
We show that in economies without liquidity frictions, but with incomplete financial markets, when agents are infinitely lived and uniformly impatient, money can still be essential (that is, have a positive price in equilibrium) if and only if each agent has binding debt constraints at some node of her life span. That is, contrary to what might be expected, in the absence of a very productive financial market, frictions induced by debt constraints create some room for improving efficiency, by allowing money to have a role in transferring wealth across dates and states of nature.
- Sprache
-
Englisch
- Erschienen in
-
Series: Texto para discussão ; No. 541
- Klassifikation
-
Wirtschaft
General Equilibrium and Disequilibrium: General
Incomplete Markets
- Thema
-
Cashless economies
Binding debt constraints
Fundamental value of money.
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Páscoa, Mário R.
Petrassi, Myrian
Torres-Martínez, Juan Pablo
- Ereignis
-
Veröffentlichung
- (wer)
-
Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia
- (wo)
-
Rio de Janeiro
- (wann)
-
2007
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Páscoa, Mário R.
- Petrassi, Myrian
- Torres-Martínez, Juan Pablo
- Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia
Entstanden
- 2007
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