We assess the quantitative implications of collateral re-use on leverage, volatility, and welfare within an infinite …-horizon asset-pricing model with heterogeneous agents. In our model, the ability of agents to reuse frees up collateral that can be …

projects. In equilibrium, the collateralization-screening mix depends on the value of aggregate collateral. High collateral … important dynamic implications. During credit booms driven by high collateral values (e.g. real estate booms), the economy … accumulates physical capital but depletes information about investment projects. As a result, collateral-driven booms end in deep …

This paper examines the robustness of the Kiyotaki-Moore collateral amplification mechanism to the existence of … volatility of endogenous variables becomes identical to the first best in the absence of credit constraints. The collateral …

We build a model of collateral choice by banks that allows to recover the opportunity cost of collateral use and the … Central Bank from 2009 to 2011. The model can be used to quantify how changes in haircuts affect the collateral used by banks … rated collateral would have reduced the use of this collateral by 10% but would have increased the average funding cost …

projects. In equilibrium, the collateralization-screening mix depends on the value of aggregate collateral. High collateral … important dynamic implications. During credit booms driven by high collateral values (e.g. real estate booms), the economy … accumulates physical capital but depletes information about investment projects. As a result, collateral-driven booms end in deep …

How do housing bubbles affect other economic sectors? We show that in the presence of collateral constraints, a bubble …