Collateral constraints and rental markets

Hippolyte d'Albis and Eleni Iliopoulos
Authors registered in the RePEc Author Service: Eleni Iliopulos

MPRA Paper from University Library of Munich, Germany

Abstract: We 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.

Keywords: heterogeneous discounting; collateral constraints; rental market; credit market. (search for similar items in EconPapers)
JEL-codes: E30 R31 (search for similar items in EconPapers)
Date: 2013-09-03
New Economics Papers: this item is included in nep-dge, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Collateral constraints and rental markets (2013)
Working Paper: Collateral constraints and rental markets (2013)
Working Paper: Collateral constraints and rental markets (2013)
Working Paper: Collateral constraints and rental markets (2013)
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