of future events, Manski (2004) has recently argued that there is little existing theory supporting this practice. We …

that can be used as collateral. This paper presents a model where firm creation and growth hinge on matching potential … entrepreneurs with productive technologies, while firm growth depends on acquired capital. The shortage of collateral creates a ….g., the depth of credit information and the strength of legal rights pertaining to collateral and bankruptcy) would stimulate …

the U.S. We then establish the quantitative result that home equity does not serve as informal collateral for unsecured …

tend not to face higher interest rates because they provide collateral. This paper illustrates these effects in a model and …