Faig, Miquel; Gagnon, Gregory - In: Journal of Macroeconomics 30 (2008) 4, pp. 1723-1737
If collateral for bank loans is scarce and, if as a result, access to secured loans is restricted, the allocation of resources is inefficient. In anticipation of future borrowing constraints, individuals over-invest in collateralized types of capital, and consume and invest inefficiently low...
