Default Risk and Trade Balance Surpluses With Correlated Shocks
Show that Proposition 13.1 holds when the endowment process is assumed to be serially correlated.
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---
title: "Exercise 13.10"
subtitle: "Default Risk and Trade Balance Surpluses With Correlated Shocks"
---
<a class="return-button" href="index.qmd">⬅ Return</a>
## Problem
Show that Proposition 13.1 holds when the endowment process is assumed to be serially correlated.
## Answer
_No solution has been posted yet. If you have a solution, we invite you to share it in the comment box at the bottom of this page._