is then modified to include a collateral constrained consumer. We show that collateral constraints may affect the level …

Collateral constraints widely used in models of financial crises feature a pecuniary externality: Agents do not … internalize how borrowing decisions taken in “good times” affect collateral prices during a crisis. We show that agents in a …

This paper tries to improve the identification of firms whose access to bank credit would be threatened by a tightening … of monetary policy. It extends a simple competitive credit rationing model with limited collateral by introducing a … central bank financing facility. The effects of monetary policy are then examined. Besides the standard interest rate effect …

. Conversely, lack of collateral may prevent them from doing so. We bring evidence from a difference-in-difference approach to shed … light on this central question in corporate hedging theory. We use hand-collected data from the oil and gas industry that … incorporates an exogenous shock that sharply increased the cost of external financing. The evidence supports collateral …

. First, we use a structural model of firm dynamics with collateral constraints, and estimate the model to match the firm …-level sensitivity of investment to collateral values. We estimate that firms can only pledge about 19% of their collateral value. Second …, we embed this model in a general equilibrium framework and estimate that, relative to first-best, collateral constraints …