Unique Equilibrium in the Eaton-Gersovitz Model of Sovereign Debt
We provide a proof that Markov Perfect equilibrium is unique in the standard infinitehorizon incomplete-market model with a default option which, following Eaton and Gersovitz (1981), has become a benchmark for quantitative analyses of sovereign debt (Arellano (2008), Aguiar and Gopinath (2006), Agu...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | en_US |
| Published: |
2014
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| Subjects: | |
| Online Access: | http://hdl.handle.net/1721.1/89187 |
| _version_ | 1826203108813832192 |
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| author | Auclert, Adrien Rognlie, Matthew |
| author_facet | Auclert, Adrien Rognlie, Matthew |
| author_sort | Auclert, Adrien |
| collection | MIT |
| description | We provide a proof that Markov Perfect equilibrium is unique in the standard infinitehorizon incomplete-market model with a default option which, following Eaton and Gersovitz (1981), has become a benchmark for quantitative analyses of sovereign debt (Arellano (2008), Aguiar and Gopinath (2006), Aguiar and Amador (2014)). |
| first_indexed | 2024-09-23T12:31:47Z |
| format | Working Paper |
| id | mit-1721.1/89187 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T12:31:47Z |
| publishDate | 2014 |
| record_format | dspace |
| spelling | mit-1721.1/891872019-04-11T14:16:27Z Unique Equilibrium in the Eaton-Gersovitz Model of Sovereign Debt Auclert, Adrien Rognlie, Matthew sovereign debt, default, multiplicity We provide a proof that Markov Perfect equilibrium is unique in the standard infinitehorizon incomplete-market model with a default option which, following Eaton and Gersovitz (1981), has become a benchmark for quantitative analyses of sovereign debt (Arellano (2008), Aguiar and Gopinath (2006), Aguiar and Amador (2014)). Macro-Financial Modeling group 2014-09-04T22:11:29Z 2014-09-04T22:11:29Z 2014-09-04 Working Paper http://hdl.handle.net/1721.1/89187 en_US Working paper, Massachusetts Institute of Technology, Dept. of Economics;GSRP 14-01 application/pdf |
| spellingShingle | sovereign debt, default, multiplicity Auclert, Adrien Rognlie, Matthew Unique Equilibrium in the Eaton-Gersovitz Model of Sovereign Debt |
| title | Unique Equilibrium in the Eaton-Gersovitz Model of Sovereign Debt |
| title_full | Unique Equilibrium in the Eaton-Gersovitz Model of Sovereign Debt |
| title_fullStr | Unique Equilibrium in the Eaton-Gersovitz Model of Sovereign Debt |
| title_full_unstemmed | Unique Equilibrium in the Eaton-Gersovitz Model of Sovereign Debt |
| title_short | Unique Equilibrium in the Eaton-Gersovitz Model of Sovereign Debt |
| title_sort | unique equilibrium in the eaton gersovitz model of sovereign debt |
| topic | sovereign debt, default, multiplicity |
| url | http://hdl.handle.net/1721.1/89187 |
| work_keys_str_mv | AT auclertadrien uniqueequilibriumintheeatongersovitzmodelofsovereigndebt AT rognliematthew uniqueequilibriumintheeatongersovitzmodelofsovereigndebt |