Martins-da-Rocha, V. Filipe; Vailakis, Yiannis - In: Journal of Mathematical Economics 48 (2012) 1, pp. 1-13
The objective of the paper is to propose endogenous debt constraints that rule out Ponzi schemes and ensure the existence of equilibria in a model with limited commitment and (possible) default. We appropriately modify the definition of finitely effective debt constraints, introduced by Levine...