We assess the quantitative implications of collateral re-use on leverage, volatility, and welfare within an infinite … used to back more transactions. Re-use thus contributes to the buildup of leverage and significantly increases volatility … leverage and lower welfare. So the analysis in this paper provides a rationale for limiting, yet not banning, re-use in …

a constraint on leverage as in Gertler and Kiyotaki (2010). We show that a mere increase in the probability of firms … framework a constraint on leverage induces countercyclical risk premia in equity markets even when it does not bind. …

access to another (unregulated) class of collateralizable assets to take up leverage. In contrast, a countercyclical margin …

We assess the quantitative implications of collateral re-use on leverage, volatility, and welfare within an infinite … used to back more transactions. Re-use thus contributes to the buildup of leverage and significantly increases volatility … leverage and lower welfare. So the analysis in this paper provides a rationale for limiting, yet not banning, re-use in …

access to another (unregulated) class of collateralizable assets to take up leverage. In contrast, a countercyclical margin …

a constraint on leverage as in Gertler and Kiyotaki (2010). We show that a mere increase in the probability of firms … framework a constraint on leverage induces countercyclical risk premia in equity markets even when it does not bind …