Wealth transfers and the role of collateral when lifetimes are uncertainEconomic Theory (2008)
We develop a general equilibrium model of wealth transfers in the presence of uncertain lifetimes and default. Without introducing exogenous debt constraints, agents are allowed to make collateral-backed promises at any state of their life span.
- Wealth transfers,
- collateralized asset markets,
- uncertain lifetimes,
Citation InformationSeghir, A. and J. P. Torres-Martínez (2008): "Wealth transfers and the role of collateral when lifetimes are uncertain," Economic Theory, volume 36, pages 471-502.