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generate self-reinforcing booms and busts in house prices and significantly strengthen the role of collateral constraints in …
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estate collateral. This is most pronounced for opaque (for example, very young) firms. Through an extension to our model and … our choice of specification, we show that our findings are most consistent with a collateral-value-based credit supply …
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credit via revaluation of collateral and subsequent lending decisions. Specifically we examine banks' treatment of real … estate collateral during the Covid-19 crisis. First we find evidence of significant frictions in the transmission of asset … price dynamics to collateral values. Despite this we find that lending relationships reliant on real estate collateral …
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This chapter surveys the literature on housing in macroeconomics. We first collect facts on house prices and quantities in both the time series and the cross section of households and housing markets. We then present a theoretical model of frictional housing markets with heterogeneous agents...
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