Fiscal Policy and Microstructure of Treasury Bonds
This paper presents an alternative approach to understand the role of insurer in an economy with incomplete market. Based in a simple Stokey-Lucas framework. I construct a model with microstructure in the treasury bond markets with heterogenous bidders. The quantities and prices of the treasury bonds are a result of an auction mechanism, where the agents infer the private valuation distribution of others agents in order to obtain individual valuations. In this environment, the government borrowing constraint is endogenously determined by strategic behavior, and therefore the government insurer role depends on the size of incompleteness of public debt markets
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.
|Date of creation:||04 Jul 2006|
|Date of revision:|
|Contact details of provider:|| Web page: http://comp-econ.org/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sce:scecfa:328. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.