Format:
1 Online-Ressource (77 p)
Content:
This article explores the implications of borrower’s side collateral constraints on the real economy. The novel element in this model relative to the industry standard model is that I model the entrepreneurs, which are crucial for investment, as collateral constrained. I find three main results. First, collateral requirements were highly volatile during the period 2007–2012. Second, the effect of an increase in collateral requirements is highly significant. Third, the model assigns an important role for collateral in the shock decomposition, and the contribution of financial shocks is much marked during the financial crisis and substantially shapes macroeconomic fluctuations
Note:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 14, 2022 erstellt
Language:
English
DOI:
10.2139/ssrn.4254082
