theories that see collateral as a form of insurance, to be used only in extremis …

In this paper we examine the effect of collateral requirements on the prices of long-lived assets. We consider a Lucas …-style infinite-horizon exchange economy with heterogeneous agents and collateral constraints. There are two trees in the economy … which can be used as collateral for short-term loans. For the first tree the collateral requirement is determined …

Many assets derive their value not only from future cash flows but also from their ability to serve as collateral. In … this paper, we investigate this collateral value and its impact on asset returns in an infinite-horizon general equilibrium … model with heterogeneous agents facing collateral constraints for borrowing. We document that borrowing against collateral …

Many assets derive their value not only from future cash flows but also from their ability to serve as collateral. In … this paper, we investigate this collateral value and its impact on asset returns in an infinite-horizon general equilibrium … model with heterogeneous agents facing collateral constraints for borrowing. We document that borrowing against collateral …

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 …

financial frictions and labor demand, as in Jermann and Quadrini (2012), is key to the result. A collateral constraint a la …

We show that cross-border financial flows arise when countries differ in their abilities to use assets as collateral …. Financial integration is a way of sharing scarce collateral. The ability of one country to leverage and tranche assets provides … for investors in the financially advanced country to invest abroad. Foreign demand for collateral and for collateral …