Code for "Online Appendix: Optimal Financial Exclusion"

Principal Investigator(s):  View help for Principal Investigator(s) Erwan Quintin, University of Wisconsin -- Madison; Cyril Monnet, University of Bern

Version:  View help for Version V2

Name File Type Size Last Modified
Readme.txt text/plain 1.5 KB 06/02/2020 08:08:AM
doVm0.m text/x-objcsrc 3.6 KB 01/03/2019 11:20:AM
dofig1eq.m text/x-objcsrc 640 bytes 01/03/2019 11:47:AM
findR.m text/x-objcsrc 1.7 KB 06/02/2020 08:09:AM
mainsearch3.m text/x-matlab 522 bytes 01/03/2019 11:55:AM

Project Citation: 

Quintin, Erwan, and Monnet, Cyril . Code for “Online Appendix: Optimal Financial Exclusion.” Nashville, TN: American Economic Association [publisher], 2021. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2021-10-21. https://doi.org/10.3886/E119700V2

Project Description

Summary:  View help for Summary This archive contains the code necessary to produce figure 1 in the online appendix for "Optimal Financial Exclusion"

Abstract: We study efficient exclusion policies in a canonical credit model that features both exogenous and strategic default along the equilibrium path. Policies that maximize welfare in a stationary equilibrium implement exclusion for a finite and deterministic number of periods following default. Front-loading exclusion makes the mass of socially valuable transactions as high as it can be in steady state. Less intuitively, doing so also maximizes the average welfare of excluded agents in equilibrium conditional on the level of incentives provided by the threat of exclusion. We argue that these results are robust to a host of natural variations on our benchmark model.

Keywords: endogenous default, exclusion
JEL codes: D52; D82

Manuscript number: AEJMicro-2019-0005

Scope of Project

Subject Terms:  View help for Subject Terms Endogenous default; Exclusion
JEL Classification:  View help for JEL Classification
      D52 Incomplete Markets
      D82 Asymmetric and Private Information; Mechanism Design
Data Type(s):  View help for Data Type(s) program source code


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V2 [2021-10-21]

V1 [2020-06-02]

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