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| Ludovic Renou and Guillaume Carlier |
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| ''Existence and monotonicity of optimal debt contracts in costly state verification models'' |
| ( 2003, Vol. 7 No.5 ) |
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| 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. |
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| Keywords: |
JEL:
C6 - Mathematical Methods and Programming: General |
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| Manuscript Received : Aug 07 2003 | | Manuscript Accepted : Sep 11 2003 |
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