Intergenerational redistribution with endogenous constraints to household debt

IF 1 4区 经济学 Q3 ECONOMICS
Ilya Eryzhenskiy
{"title":"Intergenerational redistribution with endogenous constraints to household debt","authors":"Ilya Eryzhenskiy","doi":"10.1016/j.jmateco.2024.103068","DOIUrl":null,"url":null,"abstract":"<div><div>I study decentralization of optimal allocations in an endowment overlapping-generations economy where young agents face endogenous borrowing constraints. Lenders constrain credit because of limited commitment of borrowers: those can declare bankruptcy and only lose their ability to make savings for retirement in the future. The social planner can use lump-sum transfers and government debt in order to decentralize optimal allocations of consumption goods. I show that policies using government debt decentralize a larger set of optimal allocations, as opposed to balanced-budget policies with the same number of instruments per period. In addition, government debt always rules out equilibria where the private credit market does not operate and can rule out equilibrium steady states with binding borrowing constraints. The results are explained by incentives for saving and debt repayment under limited commitment, so they do not hold under common specifications of exogenous debt constraints.</div></div>","PeriodicalId":50145,"journal":{"name":"Journal of Mathematical Economics","volume":"116 ","pages":"Article 103068"},"PeriodicalIF":1.0000,"publicationDate":"2024-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Mathematical Economics","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0304406824001289","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0

Abstract

I study decentralization of optimal allocations in an endowment overlapping-generations economy where young agents face endogenous borrowing constraints. Lenders constrain credit because of limited commitment of borrowers: those can declare bankruptcy and only lose their ability to make savings for retirement in the future. The social planner can use lump-sum transfers and government debt in order to decentralize optimal allocations of consumption goods. I show that policies using government debt decentralize a larger set of optimal allocations, as opposed to balanced-budget policies with the same number of instruments per period. In addition, government debt always rules out equilibria where the private credit market does not operate and can rule out equilibrium steady states with binding borrowing constraints. The results are explained by incentives for saving and debt repayment under limited commitment, so they do not hold under common specifications of exogenous debt constraints.
家庭债务内生约束的代际再分配
我研究了禀赋重叠代经济中最优分配的分散化问题,在这种情况下,年轻的经济主体面临内生的借贷约束。贷款人限制信贷是因为借款人的承诺有限:借款人可以宣布破产,只会失去为未来退休储蓄的能力。社会计划者可以使用一次性转移支付和政府债务来分散消费品的最优分配。我表明,与每个时期使用相同数量工具的平衡预算政策相比,使用政府债务的政策分散了更多的最佳配置。此外,政府债务总是排除私人信贷市场不运作的均衡,并且可以排除具有约束性借贷约束的均衡稳定状态。这一结果可以用有限承诺下的储蓄和债务偿还激励来解释,因此它们在外生债务约束的共同规范下不成立。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
Journal of Mathematical Economics
Journal of Mathematical Economics 管理科学-数学跨学科应用
CiteScore
1.70
自引率
7.70%
发文量
73
审稿时长
12.5 weeks
期刊介绍: The primary objective of the Journal is to provide a forum for work in economic theory which expresses economic ideas using formal mathematical reasoning. For work to add to this primary objective, it is not sufficient that the mathematical reasoning be new and correct. The work must have real economic content. The economic ideas must be interesting and important. These ideas may pertain to any field of economics or any school of economic thought.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信