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  • Asset pledgeability and endogenously leveraged bubbles 

    Bengui, Julien; Phan, Toan (Université de Montréal. Département de sciences économiques., 2018-06)
    We develop a simple model of defaultable debt and rational bubbles in the price of an asset, which can be pledged as collateral in a competitive credit pool. When the asset pledgeability is low, the down payment is high, and bubble investment is ...