Endogeneous Risk in Monopolistic Competition

Paper number: 12/08

Year: 2012

Paper Category: Discussion Paper

Authors

Vladislav Damjanovic

Abstract

We consider a model of …financial intermediation with a monopolistic competition market structure. A non-monotonic relationship between the risk measured as a probability of default and the degree of competition is established.

Endogeneous Risk in Monopolistic Competition Endogeneous Risk in Monopolistic Competition