Two notes about Ponzi schemes

Files in This Item:
File Description SizeFormat 
wp87_53.pdf383.87 kBAdobe PDFDownload
Title: Two notes about Ponzi schemes
Authors: Honohan, Patrick
Permanent link: http://hdl.handle.net/10197/1440
Date: Oct-1987
Abstract: A Ponzi scheme is an arrangement whereby a promoter offers an investment opportunity with attractive dividends, but where the only basis for the dividends is the future receipts from new investors. The first of these two notes explores some of the analytical properties of a Ponzi scheme, addressing in particular the question whether it is possible for a Ponzi scheme to exist if all the participants are rational. The second note briefly examines the collapse of the PMPA insurance company whose accounts document the evolution of an unsound financial operation displaying many of the characteristics of the Ponzi scheme.
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Subject LCSH: Ponzi schemes
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

Show full item record

Page view(s) 10

208
checked on May 25, 2018

Download(s) 50

164
checked on May 25, 2018

Google ScholarTM

Check


This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.