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, collateral values, and debt limits. We show that the collateral premium of a durable asset will become the lowest right before a …
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borrowers and supply less credit to unproductive firms when collateral values rise. My results provide direct evidence that …
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, collateral values, and debt limits. We show that the collateral premium of a durable asset will become the lowest right before a …
Persistent link: https://www.econbiz.de/10011973979
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As Korea's household debt has increased rapidly since the mid-2000s, concerns that its economy's hard-wired leveraging may negatively impact economic activity have grown. Calls are being made for policy actions to return the economy to its long-run trend. Housing preferences and monetary shocks...
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collateral as measured by tangible fixed assets plays a critical role. In particular, bank flow shocks increase the credit supply … to firms and sectors with more real estate collateral. Higher credit supply then leads firms to hire and invest more …
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