supply shock using micro-level data from a multinational bank. Borrowers with stronger lending relationships, higher non …-lending revenues, and those that pledge collateral, especially outside assets and real estate, experience less credit rationing …. Consistent with a tightening of financing constraints post shock, borrower composition shifts toward larger and less risky firms …

output comes from an unusual regime. -- Bubbles ; fiscal theory of the price level ; collateral constraints ; neutrality …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 …

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