serves as collateral. We show that bubbles on this reproducible asset may arise, which relax collateral constraints and …

with credit-driven stock price bubbles. Bubbles have a credit easing effect by relaxing collateral constraints and …

-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 fund …