Midlands State University Library

Equilibrium with limited-recourse collateralized loans

Torres-Martinez, Juan Pablo

Equilibrium with limited-recourse collateralized loans created by Juan Pablo Torres-Martínez and Rubén Poblete-Cazenave - Economic theory Volume 53, number 1 .

We address a general equilibrium model with limited-recourse collateralized loans. Borrowers are burden to constitute physical collateral guarantees, which are repossessed in case of default and delivered to the associated lenders. In addition, lenders may receive payments over collateral values, since debtor's wealth (physical and financial) can be garnished when commitments are not fully honored. The reimbursement of resources is proportional to the size of claims

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Equilibrium--Collateralized loans--Limited-recourse

HB119 ECO