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On the Amplification Role of Collateral Constraints

  • Caterina Mendicino

    (Banco de Portugal, Research Department.)

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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File URL: https://economicdynamics.org/meetpapers/2009/paper_1013.pdf
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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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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/
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  28. Pintus, Patrick A., 2011. "Collateral constraints and the amplification-persistence trade-off," Economics Letters, Elsevier, vol. 110(1), pages 64-66, January.
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