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On the Amplification Role of Collateral Constraints

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  • Caterina Mendicino

    (Banco de Portugal, Research Department.)

Abstract

This paper explores the role of inefficiencies in the debt enforcement procedures for the amplification of productivity and credit market shocks. We argue that the magnitude of amplification crucially depends on the fraction of the asset used as a collateral in the credit market.

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Bibliographic Info

Paper provided by Society for Economic Dynamics in its series 2009 Meeting Papers with number 1013.

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Date of creation: 2009
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Handle: RePEc:red:sed009:1013

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Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
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Cited by:
  1. Jan Vlcek & Scott Roger, 2012. "Macrofinancial Modeling At Central Banks," IMF Working Papers 12/21, International Monetary Fund.

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