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Persistent link: https://www.econbiz.de/10010381940
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 used to back more transactions. Re-use thus...
Persistent link: https://www.econbiz.de/10011959258