of financial leverage. The degree of leverage is shown to be an important factor in the amplifying role of collateral … the interactions between investment and collateral price, the endogenous accumulation of collateral asset is shown to be … an alternative channel through which the business cycle effects of collateral constraints are generated. On the other …

We study the effects of collateral constraints in an economy populated by investors with nonpledgeable labor incomes … production crises in the economy. Furthermore, stock prices have large collateral premiums over nonpledgeable incomes. We derive …

collateral constraints, and uses the model to study unconventional policies such as credit facilities and foreign exchange …

the basis on the underlying asset. Our theory correctly predicts that inclusion in the CDX index increases the underlying …