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

nominal interest rate), in a general-equilibrium model of asset pricing and risk sharing with endogenous collateral … constraints of the kind proposed by Geanakoplos (1997). The existence of collateral constraints allows our model to capture the …-bank purchases raise the price of the asset, owing to binding collateral constraints, the effects need not be the ones commonly …

of financial leverage. The degree of leverage is shown to be an important factor in the amplifying role of collateral … the interactions between investment and collateral price, the endogenous accumulation of collateral asset is shown to be … an alternative channel through which the business cycle effects of collateral constraints are generated. On the other …

I develop a dynamic model of optimal funding to understand why financial assets are used as collateral instead of being … non-investing firms and, thus, is optimal. Frictions in asset markets lead to an illiquidity discount and a collateral …

. 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 …

model with collateral. This paper develops a general-equilibrium framework to explore QE's international transmission … involving an advanced economy (AE) and an emerging market economy (EM) whose assets have less collateral capacity. Capital flows … arise as a result of international sharing of scarce collateral. The crucial insight is that private AE agents adjust their …