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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.

Suggested Citation

  • Kunieda, Takuma & Shibata, Akihisa, 2011. "Collateral Constraints and Legal Protection of Lenders: A Macroeconomic Perspective," MPRA Paper 35356, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:35356
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    File URL: https://mpra.ub.uni-muenchen.de/35356/1/MPRA_paper_35356.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

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

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General

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