Abstract
In a stochastic economy of overlapping generations subject to uninsurable risks, debt can implement Pareto improvements in welfare. This is the case even in the presence of long-lived assets and no short sales.
Original language | English |
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Pages (from-to) | 805–824 |
Number of pages | 20 |
Journal | Economic Theory |
Volume | 64 |
Issue number | 4 |
Early online date | 1 Jul 2016 |
DOIs | |
Publication status | Published - 1 Dec 2017 |
Keywords
- Long-lived assets
- Optimality
- Overlapping generations
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Nikolaos Kokonas
Person: Research & Teaching