. Fluctuations in collateral requirements, termed collateral shocks in this paper, result in a rise in spread, a drop in bank credit …What are the effects of changing bank lending conditions in a model in which borrowers have endogenously … greater at higher persistence and volatility of the collateral shocks. The results in this paper underscore that credit …

points: 1) since only tangible capital can be pledged as collateral, a shift toward intangible capital shrinks firms' debt …

collateral, a shift toward greater reliance on intangible capital shrinks the debt capacity of firms and leads them to optimally …

) and a specification of the amount of collateral per dollar of lending. The latter is summarized by the margin or "haircut …" associated with the loan. Some key models of endogenous collateral constraints imply that the primary equilibrating force will be … the part of borrowers has profound effects on asset prices. Quantitative analysis of a model of collateral equilibrium …

Loan guarantees represent a form of government intervention to support bank lending. However, their use raises concerns … as to their effect on bank risk-taking incentives. In a model of •nancial fragility that incorporates bank capital and a … bank incentive problem, we show that loan guarantees reduce depositor runs and improve bank underwriting standards, except …

deposit bank. In an economic downturn, as the value of collateral decreases, the merchant bank must sell assets on short …We describe a general equilibrium model with a banking system in which the deposit bank collects deposits from … households and the merchant bank provides funds to firms. The merchant bank borrows collateralized short-term funds from the …