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 |