The existing models of Bayesian learning with multiple priors by Marinacci (Stat Pap 43:145–151, 2002) and by Epstein and Schneider (Rev Econ Stud 74:1275–1303, 2007) formalize the intuitive notion that ambiguity should ...
In the real economic world, we often suffer from the default risk—the
present financial crisis could serve as an evidence. The long established idea for
inhibiting the default behavior is to resort to collateral, and ...
The problem of computing equilibria for general equilibrium models with incomplete real asset markets, or GEI models
for the sake of brevity, is reconsidered. It is shown here that the rank-dropping behavior of the asset ...
