identify two possible transmission channels from financial shocks to FDI: (i) a collateral channel, whereby changes in the … value of collateral affect investors’ ability to borrow; and (ii) a lending channel, whereby changes in bank health affect …

Asset-based lending, the supply of loans based on floating collateral, is an important source of funding for small .rms … firms. Close monitoring of collateral by lenders results in an informational advantage for the incumbent lender and third …

, individuals cannot commit to the use of collateral as a guarantee of repayment, and both lenders and borrowers have incentives to … macroeconomic models. We provide an explanation to the question of why assets are often used as collateral, rather than simply as a … collateral. …

, collateral values, and debt limits. We show that the collateral premium of a durable asset will become the lowest right before a …

the EMU. -- monetary union ; inflation ; differentials ; collateral constraints ; cross-country heterogeneity ; household …

Due to opaque information and weak enforcement in emerging loan markets, the need for collateral is high, whereas … borrowers lack adequate assets to pledge as collateral. How is this puzzle solved? We find for a representative sample from … Northeast Thailand that indeed most loans do not include any tangible assets as collateral. Instead, lenders enforce collateral …

and labor market frictions. The value of collateral is driven by the forward-looking dynamics of the land price, which …