Collateral constraints and rental markets
AbstractWe study a benchmark model with collateral constraints and heterogeneous discounting. Contrarily to a rich literature on borrowing limits, we allow for rental markets. By incorporating this missing market, we show that impatient agents choose to rent rather than to own the collateral in the neighborhood of the deterministic steady state. Consequently, impatient agents are not indebted and borrowing constraints play no role in local dynamics.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 49529.
Date of creation: 03 Sep 2013
Date of revision:
heterogeneous discounting; collateral constraints; rental market; credit market.;
Other versions of this item:
- Hippolyte D'Albis & Eleni Iliopulos, 2013. "Collateral constraints and rental markets," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) hal-00964867, HAL.
- E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
- R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-13 (All new papers)
- NEP-DGE-2013-09-13 (Dynamic General Equilibrium)
- NEP-MAC-2013-09-13 (Macroeconomics)
- NEP-URE-2013-09-13 (Urban & Real Estate Economics)
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