We develop a dynamic general equilibrium model with an imperfectly competitive bank-loans market and collateral … constraints that tie investors credit capacity to the value of their real estate holdings. Banks set optimal lending rates taking …

-cycle model where households face collateral constraints that tie their credit capacity to the value of their houses and examine … extract utility from their homes, landlords that obtain rents, and investors. We show that an economy with tighter collateral … constraints is more prone to bubbles which, in turn, tend to have a larger size but are less fragile in face of funddraining …

agents’ willingness to consume and to (partially) insure creditors against the risk of default, we incorporate collateral … constraints. We show that the impatience of collateral-constrained agents can be at the roots of permanent and sustainable …

investigated using U.S. data and Bayesian methods. The estimated model, which contains nominal and real rigidities and collateral … constraints, displays the following features: first, a large fraction of the upward trend in real housing prices over the last 40 …

This paper investigates the role of collateral constraints in the transmission of monetary policy shocks in a two … collateral constraints in one-sector sticky price model, it has been relatively less explored in the two-sector sticky price … model. This study shows that nominal wage rigidity is crucial for collateral constraints to accelerate the effects of …

, collateral constraints and agent heterogeneity. The partial equilibrium analysis where interest rates are exogenously fixed shows …

generate self-reinforcing booms and busts in house prices and significantly strengthen the role of collateral constraints in …