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...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universidade de São Paulo
2023-12-01
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| Series: | Estudos Econômicos |
| Subjects: | |
| Online Access: | https://www.revistas.usp.br/ee/article/view/210413 |