Geromichalos, Athanasios; Lee, Jiwon; Lee, Seungduck; … - Economics Department, University of California-Davis - 2014
We study asset pricing within a general equilibrium model where unsecured credit is ruled out, and a real asset helps agents carry out mutually beneficial transactions by serving as collateral. A unique feature of our model is that the agent who provides the loan might have a low valu- ation for...