TY - JOUR
T1 - General equilibrium with endogenous trading constraints
AU - Cea-Echenique, Sebastián
AU - Torres-Martínez, Juan Pablo
N1 - Publisher Copyright:
© 2018 Cea-Echenique, Torres-Martínez. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
PY - 2018/9
Y1 - 2018/9
N2 - In a competitive model where agents are subject to endogenous trading constraints, we make the access to financial trade dependent on prices and consumption decisions. Our framework is compatible with the existence of both credit market segmentation and market exclusion. In this context, we show equilibrium existence in two scenarios. In the first one, individuals can fully hedge the payments of segmented financial contracts by trading unsegmented assets. In the second one, it is assumed that agents may compensate with increments in present demand the losses of well-being generated by reductions of future consumption.
AB - In a competitive model where agents are subject to endogenous trading constraints, we make the access to financial trade dependent on prices and consumption decisions. Our framework is compatible with the existence of both credit market segmentation and market exclusion. In this context, we show equilibrium existence in two scenarios. In the first one, individuals can fully hedge the payments of segmented financial contracts by trading unsegmented assets. In the second one, it is assumed that agents may compensate with increments in present demand the losses of well-being generated by reductions of future consumption.
UR - http://www.scopus.com/inward/record.url?scp=85053605227&partnerID=8YFLogxK
U2 - 10.1371/journal.pone.0203814
DO - 10.1371/journal.pone.0203814
M3 - Article
C2 - 30222752
AN - SCOPUS:85053605227
SN - 1932-6203
VL - 13
JO - PLoS ONE
JF - PLoS ONE
IS - 9
M1 - e0203814
ER -