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Conventional and Unconventional Monetary Policy with Endogenous Collateral Constraints
Araújo, Aloísio - 2013
nominal interest rate), in a general-equilibrium model of asset pricing and risk sharing with endogenous collateral … constraints of the kind proposed by Geanakoplos (1997). The existence of collateral constraints allows our model to capture the …-bank purchases raise the price of the asset, owing to binding collateral constraints, the effects need not be the ones commonly …
Persistent link: https://www.econbiz.de/10012458952
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Economic Growth and Bank Innovation
Gorton, Gary; He, Ping - National Bureau of Economic Research - 2021
Based on archival and survey data we show that the maturity of U.S. business loans has been continuously increasing since the mid-1930s when banks invented the term loan. Concurrently, bank innovation first involved the invention of credit analysis and covenant design. Later, bank innovation...
Persistent link: https://www.econbiz.de/10012660004
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Collateral Pricing
Benmelech, Efraim - 2008
We examine how collateral affects the cost of debt capital. Theories based on borrower moral hazard and limited … pledgeable income predict that collateral increases the availability of credit and reduces its price. Testing these theories is … complicated by the very selection problem which they imply: creditors will demand collateral precisely from those borrowers who …
Persistent link: https://www.econbiz.de/10012464773
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Public Debt Guarantees and Private Capital Flight
Eaton, Jonathan - 1987
Significant amounts of private capital have flowed out of several of the more heavily indebted developing countries. This outflow, often called "capital flight ," largely escapes taxation by the borrowing-country government, and has generated concern about the prospects for future servicing of...
Persistent link: https://www.econbiz.de/10012476896
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Securitization without risk transfer
Acharya, Viral V. - 2010
We analyze asset-backed commercial paper conduits which played a central role in the early phase of the financial crisis of 2007-09. We document that commercial banks set up conduits to securitize assets while insuring the newly securitized assets using credit guarantees. The credit guarantees...
Persistent link: https://www.econbiz.de/10012462921
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Loan Commitments and Optimal Monetary Policy
Woodford, Michael - 1996
With loan commitments negotiated in advance, the use of tight money to restrain nominal spending has asymmetric effects upon different categories of borrowers. This can reduce efficiency, even though aggregate demand is stabilized. This is illustrated in the context of an equilibrium model of...
Persistent link: https://www.econbiz.de/10012473182
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Loan Commitments and Monetary Policy
Sofianos, George - 1987
The impact of loan commitment agreements on the way in which changes in monetary policy affects the economy is examined. In particular, the empirical relevance of quantity credit rationing in the transmission of monetary policy is studied with VAR models. We find evidence of a differential...
Persistent link: https://www.econbiz.de/10012476836
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Screen Now, Save Later? The Trade-Off between Administrative Ordeals and Fraud
Aman-Rana, Shan; Gingerich, Daniel W.; Sukhtankar, Sandip - National Bureau of Economic Research - 2023
Screening requirements are common features of fraud and corruption mitigation efforts around the world. Yet imposing these requirements involves trade-offs between higher administrative costs, delayed benefits, and exclusion of genuine beneficiaries on one hand and lower fraud on the other. We...
Persistent link: https://www.econbiz.de/10014322752
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Household Credit as Stimulus? Evidence from Brazil
Garber, Gabriel; Mian, Atif; Ponticelli, Jacopo; Sufi, Amir - National Bureau of Economic Research - 2021
From 2011 to 2014, the Brazilian government conducted a heavily advertised major credit expansion program through government banks as part of its effort to stimulate the economy. Using administrative data on individual-level borrowing and spending, we find that the program led to a substantial...
Persistent link: https://www.econbiz.de/10012660064
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The Fed Takes on Corporate Credit Risk : An Analysis of the Efficacy of the SMCCF
Gilchrist, Simon - 2020
We evaluate the efficacy of the Secondary Market Corporate Credit Facility (SMCCF), a program designed to stabilize the corporate bond market in the wake of the Covid-19 shock. The Fed announced the SMCCF on March 23 and expanded the program on April 9. Regression discontinuity estimates imply...
Persistent link: https://www.econbiz.de/10012481112