Paper #105

Títol:

Credit constraints in general equilibrium: Experimental results

Autors:

Antoni Bosch-Domènech i Joaquim Silvestre

Data:

Octubre 1996

Resum:

Our work attempts to investigate the influence of credit tightness or expansion on activity and relative prices in a multimarket set-up. We report on some double- auction, two-market experiments where subjects had to satisfy an inequality involving the use of credit. The experiments display two regimes, characterized by high and low credit availability. The critical value of credit at the common boundary of the two regimes has a compelling interpretation as the maximal credit use at the Arrow-Debreu equilibrium of the abstract economy naturally associated to our experimental environment. Our main results are that changes in the availability of credit: (a): have minor and unsystematic effects on quantities and relative prices in the high-credit regime, (b): have substantial effects, both on quantities and relative prices, in the low-credit regime.

Paraules clau:

Experimental, auctions, credit, general equilibrium, Leex

Codis JEL:

C92, D44, D51

Àrea de Recerca:

Economia Experimental i del Comportament

Publicat a:

Economic Journal, 107, 444, (1997)

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