The Ricardian equivalence under collateral constraints

The Ricardian equivalence under collateral constraints

This paper investigates the Ricardian Equivalence (RE) under collateralized debt, default, transaction costs and incomplete markets. The public debt is neutral and the RE holds only if the collateral-transfer cost depends linearly on the lump-sum tax and is fully offset. Lenders and borrowers shoul...

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Bibliographic Details
Main Authors: José Angelo Divino, Jolivê Santana Filho, Jaime Orrillo
Format: Article
Language:English
Published: Universidade de São Paulo 2023-12-01
Series:Estudos Econômicos
Subjects:
Ricardian Equivalence
Collateral constraints
Debt neutrality
Online Access:https://www.revistas.usp.br/ee/article/view/210413

Internet

https://www.revistas.usp.br/ee/article/view/210413

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