Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/100835
Authors: 
Zha, Tao
Year of Publication: 
1995
Series/Report no.: 
Working Paper, Federal Reserve Bank of Atlanta 95-8
Abstract: 
Under the assumption that asset markets are incomplete, this paper introduces bankruptcy in an intertemporal heterogeneous agent model with capital accumulation and heterogeneous agents. It explores the role of regulatory intervention and argues that intervention in the form of a level of bankruptcy exemption can enhance not only social welfare but also distributive equity. The bankruptcy law is carefully specified in the model. The model generates distributional changes in consumption, capital, and bankruptcy risk in response to an adjustment in the exemption level and accentuates the effects of these redistributions on aggregate variables.
Subjects: 
Bankruptcy
Financial markets
Document Type: 
Working Paper

Files in This Item:
File
Size
810.72 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.