coming to this answer we construct a model with reproducible capital and collateral constraints within two setups, a closed …

We decompose aggregate consumption by modelling both savers and their links to collateral constrained borrowers through … proportion to the riskiness of assets, the demand for loans, the asset price and the quantity of housing collateral. We show that …

We study the effects of collateral constraints in an economy populated by investors with nonpledgeable labor incomes … production crises in the economy. Furthermore, stock prices have large collateral premiums over nonpledgeable incomes. We derive …