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 …

We develop a new theory of information production during credit booms. In our model, entrepreneurs need credit to … projects. In equilibrium, the collateralization-screening mix depends on the value of aggregate collateral. High collateral … important dynamic implications. During credit booms driven by high collateral values (e.g. real estate booms), the economy …

coming to this answer we construct a model with reproducible capital and collateral constraints within two setups, a closed …

Following the seminal contribution of Kiyotaki and Moore (1997), the role of collateral constraints for business cycle …. In contrast, Kocherlakota (2000) and Cordoba and Ripoll (2004) demonstrate that collateral constraints per se are unable … business cycle fluctuations through collateral constraints. We show that for realistic degrees of inefficiency, collateral …

We develop a new theory of information production during credit booms. In our model, entrepreneurs need credit to … projects. In equilibrium, the collateralization-screening mix depends on the value of aggregate collateral. High collateral … important dynamic implications. During credit booms driven by high collateral values (e.g. real estate booms), the economy …

the economy's stock of pledgeable collateral generates a persistent recession, a stock market crash, and a flight …