Fostel, Ana; Geanakoplos, John - Cowles Foundation for Research in Economics, Yale University - 2013
, in what we call the Leverage Cycle. We also describe some cross-sectional implications of multiple leverage cycles … differences between the leverage cycle and the credit cycle literature. Finally, we describe an agent based model of the leverage …We review the theory of leverage developed in collateral equilibrium models with incomplete markets. We explain how …