) and a specification of the amount of collateral per dollar of lending. The latter is summarized by the margin or "haircut …" associated with the loan. Some key models of endogenous collateral constraints imply that the primary equilibrating force will be … the part of borrowers has profound effects on asset prices. Quantitative analysis of a model of collateral equilibrium …

We present 12 facts about the mortgage crisis. We argue that the facts refute the popular story that the crisis … resulted from finance industry insiders deceiving uninformed mortgage borrowers and investors. Instead, we argue that borrowers … prices. We then show that neither institutional features of the mortgage market nor financial innovations are any more likely …

leverage by studying a model that simultaneously describes dynamic and equilibrium properties of the market. Rather than taking … important because the economics of leverage is key to the understanding of financial crisis. We find that simulated double … assets are traded at a price above fundamental value in the double auction. The equilibrium level of leverage also emerges in …

'rainmakers') to take the excessive risk and employ the excessive leverage in the bubble that created the preconditions for the … losses, it is rational for rainmakers to use unsustainable leverage to invest in recklessly risky assets in the bubble. A …

affect the macroeconomic dynamics depending on banks' behaviour as for their leverage ratio. We first show that the level of … banks' leverage - which may be imposed by banks regulation - affects the steady state level of output, employment and … effects on the macroeconomic dynamics: passive leverage results to be shock absorbing and capable of neutralizing an initial …