A Stochastic Infinite-Horizon Economy with Secured Lending or Unsecured Lending and Bankruptcy
AbstractModeling problems for a monetary economy are discussed and some examples are presented in the context of an infinite-horizon economy with one or two types of traders, who use fiat money to buy a single perishable consumption good. Three instances are considered, all with transactions in fiat money. The first model has no borrowing or lending. The second model permits both borrowing and lending, but all loans are secured. The third model has borrowing and unsecured lending, and takes into account the presence of debtors who are unable to honor their debts and go bankrupt. Borrowing and depositing take place through an outside bank, although in some circumstances a money market could be used instead. Conditions for different forms of lending are discussed. This is a survey of three technical papers, where the mathematical models are developed in detail and the proofs are supplied.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Santa Fe Institute in its series Working Papers with number 97-12-093.
Date of creation: Dec 1997
Date of revision:
Contact details of provider:
Postal: 1399 Hyde Park Road, Santa Fe, New Mexico 87501
Web page: http://www.santafe.edu/sfi/publications/working-papers.html
More information through EDIRC
Game theory; economics;
Other versions of this item:
- Ioannis Karatzas & Martin Shubik & William D. Sudderth, 1997. "A Stochastic Infinite-Horizon Economy with Secured Lending, or Unsecured Lending and Bankruptcy," Cowles Foundation Discussion Papers 1156, Cowles Foundation for Research in Economics, Yale University.
- NEP-ALL-2002-03-14 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shapley, Lloyd S & Shubik, Martin, 1977. "Trade Using One Commodity as a Means of Payment," Journal of Political Economy, University of Chicago Press, vol. 85(5), pages 937-68, October.
- Martin Shubik & Shuntian Yao, 1989. "Gold, Liquidity and Secured Loans in a Multi-Stage Economy. Part II. Many Durables, Land and Gold," Cowles Foundation Discussion Papers 904, Cowles Foundation for Research in Economics, Yale University.
- Martin Shubik, 2000.
"The Theory of Money,"
00-03-021, Santa Fe Institute.
- Ioannis Karatzas & Martin Shubik & William D. Sudderth, 1995.
"A Strategic Market Game With Secured Lending,"
95-03-037, Santa Fe Institute.
- Geanakoplos, J. & Karatzas, I. & Shubik, M. & Sudderth, W., 2000.
"A strategic market game with active bankruptcy,"
Journal of Mathematical Economics,
Elsevier, vol. 34(3), pages 359-396, November.
- J. Geanakoplos & I. Karatzas & M. Shubik & W. Sudderth, 1999. "A Strategic Market Game with Active Bankruptcy," Working Papers 99-04-025, Santa Fe Institute.
- John Geanakoplos & Ioannis Karatzas & Martin Shubik & William D. Sudderth, 1998. "A Strategic Market Game with Active Bankruptcy," Cowles Foundation Discussion Papers 1183, Cowles Foundation for Research in Economics, Yale University.
- Lucas, Robert E, Jr, 1978. "Asset Prices in an Exchange Economy," Econometrica, Econometric Society, vol. 46(6), pages 1429-45, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).
If references are entirely missing, you can add them using this form.