General equilibrium with endogenous trading constraints.
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- Record sourced from PubMed, PMID 30222752.
- Also identified by DOI 10.1371/journal.pone.0203814 and PMC identifier 6141088.
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Abstract
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.
Medical subject headings
- Commerce
- Models, Economic