collateral. …

We offer a new test of the ex ante theory of collateral. Theory states that lenders rely less on collateral if they … informed – informal lenders in a developing financial market. Indeed, formal lenders rely about 40% more often on collateral … have better information about borrowers. We test this by contrasting the use of collateral between formal and – better …

Central banks normally accept debt of their own governments as collateral in liquidity operations without reservations … bank's collateral framework can give rise to cliff effects and multiple equilibria in bond yields and increase the …

) and a specification of the amount of collateral per dollar of lending. The latter is summarized by the margin or "haircut …" associated with the loan. Some key models of endogenous collateral constraints imply that the primary equilibrating force will be … the part of borrowers has profound effects on asset prices. Quantitative analysis of a model of collateral equilibrium …

We establish that a monopoly bank never uses collateral as a screening device. A pooling equilibrium always exists in … which all borrowers pay the same interest rate and put zero collateral. Absence of screening leads to socially inefficient …