Valuing Government Obligations When Markets Are Incomplete
We simulate a 10-period overlapping generations model with aggregate shocks to price safe and risky government obligations using consumption-asset pricing. Agents cannot trade with future generations to hedge the model's productivity and depreciation shocks, and can only invest in one-period bo...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Blackwell Publishing Inc.
2019
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| Subjects: | |
| Online Access: | View Fulltext in Publisher |