for all participating nations which is Pareto improving. Since collateral requirements are calculated on individual risk … capital market. We also discuss institutional issues of possible implementations. …

The ECB has accepted increasing amounts of rubbish collateral since the crisis started leading to exposure to serious …

The ECB has accepted increasing amounts of rubbish collateral since the crisis started leading to exposure to serious …

Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … ex post theories of collateral are empirically dominant although the ex ante theories are also valid for customers with …

decouple across secured and unsecured markets following an adverse shock to credit risk. The scarcity of underlying collateral …

We study a strategic market game with finitely many traders, infinite horizon and real assets. To this standard … some collateral requirement for financial assets; second, information among players about the structure of uncertainty is … heterogeneous beliefs were eliminated from the market (although default is possible at equilibrium) but because they have taken time …

This paper proposes and tests a theory of credit-driven asset bubbles which are neutral in their real effects. When a … lender such as a government, central bank, or banking sector is willing to lend infinitely against collateral, explosive …

International and national investors are often exposed to real wealth risks, stemming from volatile asset prices and …, price level and futures price and hence real wealth is stochastic. For a risk averse investor, optimal consumption and …

An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit … incidence of collateral. We exploit exogenous variation in lender information related to the adoption of an information … technology that reduces ex ante private information, and compare collateral outcomes before and after adoption. Our results are …