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Collateral Constraints and Legal Protection of Lenders: A Macroeconomic Perspective

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  • Kunieda, Takuma
  • Shibata, Akihisa

Abstract

We identify countries that establish collateral-based lending systems with a small-open-economy version of Nobuhiro Kiyotaki and John Moore’s (1997) model. We find that 47 countries in 1980s and 48 countries in 1990s out of 98 countries establish collateral-based lending systems. We also investigate the origin of collateral-based lending systems and find that if a country offers good legal protection for lenders, then a collateral-based lending system is more likely to be embedded in that country.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35356.

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Date of creation: 29 Sep 2011
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Handle: RePEc:pra:mprapa:35356

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Keywords: Credit constraints; Collateral-based lending; Legal protection of lenders; Kiyotaki-Moore model;

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