Renou, Ludovic and Carlier, Guillaume (2003) Existence and monotonicity of optimal debt contracts in costly state verification models. Economics Bulletin, 7 (5). pp. 1-9.
Renou, Ludovic and Carlier, Guillaume (2003) Existence and monotonicity of optimal debt contracts in costly state verification models. Economics Bulletin, 7 (5). pp. 1-9.
Renou, Ludovic and Carlier, Guillaume (2003) Existence and monotonicity of optimal debt contracts in costly state verification models. Economics Bulletin, 7 (5). pp. 1-9.
Abstract
This note gives a simple proof of the existence and monotonicity of optimal debt contracts in simple models of borrowing and lending with ex-post asymmetric information, risk-averse agents and heterogeneous beliefs. Our argument is based on the concept of nondecreasing rearrangement and on a supermodular version of Hardy-Littlewood inequality.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Social Sciences > Economics, Department of |
| Depositing User: | Jim Jamieson |
| Date Deposited: | 06 Jan 2013 23:24 |
| Last Modified: | 06 Jan 2013 23:24 |
| URI: | http://repository.essex.ac.uk/id/eprint/5008 |