Haliassos, Michael; Hassapis, Christis - EconWPA - 1998
This paper studies effects of two classes of borrowing constraints, collateral- and income-based, on wealth … accumulation, portfolio behavior and on precautionary motives. We examine the sensitivity of solutions to tightness of constraints …-based constraints but not necessarily for constraints where assets also serve as collateral. The commonly used nonnegativity constraint …