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Unique Equilibrium in the Eaton-Gersovitz Model of Sovereign Debt
We provide a proof that Markov Perfect equilibrium is unique in the standard infinitehorizon incomplete-market model with a default option which, following Eaton and Gersovitz (1981), has become a benchmark for quantitative ...
Robust Two-Step Confidence Sets, and the Trouble with the First Stage F-Statistic
When weak identification is a concern researchers frequently calculate confidence sets in two steps, first assessing the strength of identification and then, on the basis of this initial assessment, deciding whether to use ...