limited enforcement of trades. We then show that -- when collateral is sufficient to avoid default -- profit-maximizing CCPs … ``overcollateralize'' trades relative to user-oriented CCPs and, hence, are less efficient. However, when collateral is not covering all …

when compared with collateral constrained models. Our results do not depend on the specification of the collateralized …

In this paper, I examine the implications of collateral constraints in a production economy and demonstrate that … collateral constraints may have a role to play in resolving two outstanding puzzles: the risk-free rate puzzle and the total … productivity risk through the collateral constraint and that a low risk-free real interest rate can be obtained for small, and …