UNIQUE MARKOV EQUILIBRIUM UNDER LIMITED COMMITMENT

2020 ◽  
Vol 61 (2) ◽  
pp. 721-751
Author(s):  
Gaetano Bloise
Keyword(s):  
Limited Commitment ◽  
Markov Equilibrium

scholarly journals Reputation and Sovereign Default

Econometrica ◽  
2021 ◽  
Vol 89 (4) ◽  
pp. 1979-2010 ◽  
Author(s):  
Manuel Amador ◽  
Christopher Phelan
Keyword(s):  
Continuous Time ◽  
Sovereign Debt ◽  
Sovereign Default ◽  
Bond Price ◽  
Continuous Time Model ◽  
Bond Prices ◽  
Time Model ◽  
Markov Equilibrium ◽  
Random Times ◽  
Increasing Functions

This paper presents a continuous‐time model of sovereign debt. In it, a relatively impatient sovereign government's hidden type switches back and forth between a commitment type, which cannot default, and an opportunistic type, which can, and where we assume outside lenders have particular beliefs regarding how a commitment type should borrow for any given level of debt and bond price. In any Markov equilibrium, the opportunistic type mimics the commitment type when borrowing, revealing its type only by defaulting on its debt at random times. The equilibrium features a “graduation date”: a finite amount of time since the last default, after which time reputation reaches its highest level and is unaffected by not defaulting. Before such date, not defaulting always increases the country's reputation. For countries that have recently defaulted, bond prices and the total amount of debt are increasing functions of the amount of time since the country's last default. For countries that have not recently defaulted (i.e., those that have graduated), bond prices are constant.

scholarly journals Project Design with Limited Commitment and Teams

2012 ◽  
Author(s):  
George Georgiadis ◽  
Steven A. Lippman ◽  
Christopher S. Tang
Keyword(s):  
Limited Commitment ◽  
Project Design

Stationary Markovian equilibrium in altruistic stochastic OLG models with limited commitment

2012 ◽  
Vol 48 (2) ◽  
pp. 115-132 ◽  
Author(s):  
Łukasz Balbus ◽  
Kevin Reffett ◽  
Łukasz Woźny
Keyword(s):  
Limited Commitment ◽  
Olg Models

The Wrong Shape of Insurance? What Cross-Sectional Distributions Tell Us about Models of Consumption Smoothing

2013 ◽  
Vol 5 (4) ◽  
pp. 107-140 ◽  
Author(s):  
Tobias Broer
Keyword(s):  
Risk Sharing ◽  
Limited Commitment ◽  
Cross Sectional ◽  
Joint Distributions ◽  
Insurance Contracts ◽  
Moment Measures ◽  
Method Of Moments Estimation ◽  
Estimated Risk ◽  
Standard Models ◽  
Insurance Model

This paper shows how two standard models of consumption risk-sharing—self-insurance through borrowing and saving and limited commitment to insurance contracts—replicate similarly well the standard, second-moment measures of insurance observed in US micro data. A nonparametric analysis, however, reveals strongly contrasting and counterfactual joint distributions of consumption, income and wealth. Method of moments estimation shows how measurement error in consumption eliminates excessive skewness and smoothness of consumption growth. Moreover, counterfactual nonlinearities disappear at high-estimated risk aversion under self-insurance, but are a robust feature of limited commitment. Its “shape of insurance” thus argues in favor of the self-insurance model. (JEL D14, D81, D91, G22, E21)

Anterior pituitary cells defective in the cell-autonomous factor, df, undergo cell lineage specification but not expansion

Development ◽  
1996 ◽  
Vol 122 (1) ◽  
pp. 151-160 ◽  
Author(s):  
P.J. Gage ◽  
M.L. Roller ◽  
T.L. Saunders ◽  
L.M. Scarlett ◽  
S.A. Camper
Keyword(s):  
Anterior Pituitary ◽  
Cell Lineage ◽  
Cell Types ◽  
Limited Commitment ◽  
Recessive Mutation ◽  
Pituitary Cells ◽  
Lineage Specification ◽  
Ames Dwarf ◽  
Dependent Cell ◽  
A Cell

The Ames dwarf mouse transmits a recessive mutation (df) resulting in a profound anterior pituitary hypocellularity due to a general lack of thyrotropes, somatotropes and lactotropes. These cell types are also dependent on the pituitary-specific transcription factor, Pit-1. We present evidence that expression of Pit-1 and limited commitment to these cells lineages occurs in df/df pituitaries. Thus, the crucial role of df may be in lineage-specific proliferation, rather than cytodifferentiation. The presence of all three Pit-1-dependent cell types in clonally derived clusters provides compelling evidence that these three lineages share a common, pluripotent precursor cell. Clusters containing different combinations of Pit-1-dependent cell types suggests that the Pit-1+ precursor cells choose from multiple developmental options during ontogeny. Characterization of df/df<-->+/+ chimeric mice demonstrated that df functions by a cell-autonomous mechanism. Therefore, df and Pit-1 are both cell-autonomous factors required for thyrotrope, somatotrope and lactotrope ontogeny, but their relative roles are different.

scholarly journals Strategic Inventories under Limited Commitment

2017 ◽  
Author(s):  
Fabio Antoniou ◽  
Raffaele Fiocco
Keyword(s):  
Limited Commitment
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