This paper investigates whether housing collateral is important to the business cycle in China. We develop two models …, one without housing collateral as benchmark and one variant allowing for it. Indirect Inference procedure tests these two … models' compatibility with the data. We find that the benchmark model passes the test, while the collateral model is strongly …

borrowers and supply less credit to unproductive firms when collateral values rise. My results provide direct evidence that …

effect on consumption. This builds on the literature studying the role of the collateral and housing wealth effects on … shock drives consumption via both the collateral and housing wealth channels, a foreign housing demand shock operates mainly …

boom in real estate purchases by buyers from China, which amounted to $200 billion of purchases made between 2010 and 2019 …

impact U.S. household spending. The results suggest that house values affect consumption by serving as collateral for …

finding with a model featuring a collateral constraint that translates income volatility to housing return volatility …. Collateral constraints are tighter for lower-income areas, causing higher housing return volatility. We validate this mechanism …, and using state-level non-recourse status to instrument for collateral constraints. Consistent with our model, housing …

This paper exploits shocks to the value of real estate collateral to study how exogenous changes in firms' external … financing capacity affect their competitive performance and industry dynamics. Firms with appreciating collateral tend to gain … market share and differentiate themselves from rivals. Shocks to collateral lead to less competitive product markets. The …

significant positive relation between tangibility and leverage, which is strongest for real estate collateral (land & building …

mortgages as commodities and exotic financing products changed the position and role of mortgage loan collateral. As new and … unregulated mortgage servicing and debt collection practices were increasingly insulated from mortgage ownership, collateral as a … securing factor became remote and overlooked by mortgagees. Meanwhile, the collateral matters greatly to those proximately …