The Joint Determination of Haircuts and Interest Rates for Collateralized Loans in Shadow Banking

The author thanks Bruno Biais (the editor), the associate editor, and two referees for insightful comments that improved this paper; Costas Azariadis, Varadarajan V. Chari, Philip H. Dybvig, Eric Hughson, Nobuhiro Kiyotaki, Alp Simsek, Anjan Thakor, Stephen Williamson, and William Zame for helpful discussions and suggestions; and participants at the Annual Cowles General Equilibrium Conference, the American Economic Association Annual Meeting, the University of Southern California Marshall PhD Conference in Finance, the Conference on Financial Economics and Accounting, the China International Conference in Finance, the Australasian Finance and Banking Conference PhD Forum, and the Reserve Bank of New Zealand for comments. All errors are mine.