. Private assets are used as collateral and come in heterogeneous quality. Financial fragility is the probability that a large …

which crises happen when credit booms change to an information regime with careful examination of collateral. As this … examination is more valuable when collateral backs projects with low productivity, crises are more likely during booms that …

valuation of collateral. Both private and public assets are used in insurance markets as collateral, but their exposure to … economy tends to damage risk sharing when the composition of collateral is biased toward private assets. As we show that a … stable economy is more propitious to the creation of private collateral, stability makes risk sharing increasingly fragile to …

careful examination of collateral. As this examination is more valuable when collateral backs projects with low productivity …