Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/202661
Authors: 
Kuang, Pei
Year of Publication: 
2014
Series/Report no.: 
Birmingham Business School Discussion Paper Series [2014-05]
Abstract: 
This paper studies the interaction of agents' collateral price beliefs, credit constraint and aggregate economic activity over the business cycle. Learning strengthens the role of collateral constraints in aggregate fluctuations. Under heterogeneous learning rules, numerical simulations illustrate that bankruptcy on the part of borrowers arises sooner as they track the economy faster.
Subjects: 
Learning
Collateral Constraint
Bankruptcy
Heterogeneity
JEL: 
D83
E44
G14
URL of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-sa/2.5/
Document Type: 
Working Paper

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