Loenser, Christian; Röttger, Joost; Schabert, Andreas - 2022 - This version: November 18, 2021
reduces ex-ante social welfare. A Pigouvianstyle symmetric debt tax (that subsidizes savings) raises collateral prices and … externalities induced by a collateral constraint. Limiting the loan-to-value ratio benefits only few unconstrained borrowers and … social welfare. Overall, collateral effects are of minor importance and interest rate rather than asset price responses are …