Collateral requirements play an important role in credit markets. This paper shows that the endowment effect … as collateral. Using a field experiment in Kenya, we show that borrowers instead strongly prefer loans collateralized … valued before ownership. Our findings imply that assets which are difficult to use as collateral--which cannot be financed by …

collateral is scarce. We call this process shadow banking. A rise in uncertainty raises demand for crash-proof liquidity, forcing … intermediaries to delever and substitute toward safe, collateral- intensive liabilities. Shadow banking shrinks, causing the … liquidity supply to contract, discount rates and collateral premia spike, prices and investment fall. The model produces slow …

collateral constraints, and uses the model to study unconventional policies such as credit facilities and foreign exchange …

We exploit a 2004 credit reform in Brazil that simplified the sale of repossessed cars used as collateral for auto … of a credit reform, highlighting the crucial role that collateral and repossession play in the liberalization and …