Collateralization, Market Incompleteness and Asset Prices

2016 ◽  
Author(s):  
James Dow ◽  
Jungsuk Han
Keyword(s):  
Asset Prices ◽  
Market Incompleteness

Bankruptcy, Finance Constraints, and the Value of the Firm

2011 ◽  
Vol 3 (2) ◽  
pp. 1-37 ◽  
Author(s):  
Douglas Gale ◽  
Piero Gottardi
Keyword(s):  
Financial Crises ◽  
Asset Prices ◽  
Investment Decisions ◽  
Alternative Interventions ◽  
Fire Sales ◽  
Market Incompleteness ◽  
Competitive Model ◽  
Finance Constraints ◽  
States Of Nature

We study a competitive model in which market incompleteness implies that debt-financed firms may default in some states of nature, and default may lead to the sale of the firms' assets at fire sale prices when a finance constraint is binding. The anticipation of such “losses” alone may distort firms' investment decisions. We characterize the conditions under which fire sales occur in equilibrium, and their consequences on firms' investment decisions. We also show that endogenous financial crises may arise in this environment, with asset prices collapsing as a result of pure self-fulfilling beliefs. Finally, we examine alternative interventions to restore the efficiency of equilibria. (JEL D83, G31, G32, G33)

Does Market Incompleteness Matter for Asset Prices?

2006 ◽  
Vol 4 (2-3) ◽  
pp. 484-492 ◽  
Author(s):  
Fatih Guvenen ◽  
Burhanettin Kuruscu
Keyword(s):  
Asset Prices ◽  
Market Incompleteness

A Behavioral Explanation to Spatial Dependencies in Commercial Real Estate Asset Prices

2019 ◽  
Author(s):  
Parmanand Sinha ◽  
Prashant Das ◽  
Julia Freybote ◽  
Roland Fuess
Keyword(s):  
Real Estate ◽  
Asset Prices ◽  
Commercial Real Estate ◽  
Spatial Dependencies

Aggregate Earnings and Asset Prices

CFA Digest ◽  
2010 ◽  
Vol 40 (1) ◽  
pp. 64-65
Author(s):  
Mohammed Saqib
Keyword(s):  
Asset Prices ◽  
Aggregate Earnings
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