Noh, Sanha; Kim, Insu - 2023
We study a fundamental difference between the Bernanke, Gertler, and Gilchrist (BGG, 1999) model and the models with collateral constraints of Kiyotaki and Moore (1997) and Iacoviello (2005). The BGG model implies that the loan-to-value (LTV) ratio is mainly determined by factors affecting...