Super-replication in economies with imperfect financial markets

Abstract

This article addresses equilibrium existence in an in nite horizon economy with in- complete markets and endogenous credit segmentation. We do not restrict consumption allocation to be bounded and we do not impose uniform impatience on preferences. Our equilibrium results consider a general framework of positive net supply assets, and introduce short-lived securities in zero net supply through a super-replication property proposed in the literature of two-period economies with nancial segmentation.