The amount of information produced about firms' productivities and about the quality of collateral backing their loans … information about collateral depreciates. A financial crisis happens when information about collateral is suddenly generated …

the cost of ex-post inefficiency when there are adverse aggregate shocks to the fundamental quality of collateral … shocks by engaging in collateral liquidations. Financial arbitrage by less leveraged financial intermediaries equilibrates … returns from acquiring collateral at fire-sale prices and returns from real-sector lending, inducing higher lending rates, a …

cornerstone of credit markets in most societies since antiquity. The ability to seize and sell collateral reduces the creditor …

Typical models of bankruptcy and collateral rely on incomplete asset markets. In fact, bankruptcy and collateral add … and Levine (2001) can be implemented in a model with bankruptcy and collateral. The equilibrium allocation is constrained … a model with bankruptcy and collateral is fragile in the sense of Leijonhufvud's "corridor of stability," however: If …

collateral requirements and subordination of OTC positions in bankruptcy can ameliorate the counterparty risk externality, they …

government debt. The safest governments inefficiently restrict the amount of high quality debt that could be used as collateral …