Acharya, Viral V. (contributor); Viswanathan, S. (contributor) - 2007
Moral Hazard, Collateral and Liquidity1
Viral V. Acharya
London Business School
and CEPR
vacharya@london.edu
S …@london.edu, Web: http://www.london.edu/faculty/vacharya
Abstract
We consider a moral hazard setup wherein leveraged firms have …. Liquidated assets are purchased by non-rationed firms but their
borrowing capacity is also limited by the moral hazard. The …