學術研究

(Macro/Finance webinar) General Equilibrium Outside the Edgeworth Box: Debt, Fragility, and Multiplicity

日期 2021-01-14 (週四)
時間 09:00 AM
地點 Conference Room C103
演講者 Professor John Geanakoplos
演講者簡介 Professor Geanakoplos received his Ph.D. in Economics from Harvard University in 1980. He is currently the James Tobin Professor of Economics at Yale University. His research interests are Economic Theory, Finance, Microeconomics, Mathematical economics, Microeconomic theory, and Social security.
摘要 We extend General Equilibrium to include negative endowments, thus allowing for initial debt and also the possibility of default. We show, as in traditional GE, that equilibrium always exists, is Pareto efficient, and is locally unique. The new phenomenon is that no matter what the utilities, for roughly half the endowments, enough debt necessarily leads to fragile equilibria and then multiple equilibria. This paper establishes a robust link between debt, fragility, and multiplicity.