On the societal benefits of illiquid bonds

Copyright belongs to the author. Small sections of the text, not exceeding three paragraphs, can be used provided proper acknowledgement is given. The Rimini Centre for Economic Analysis (RCEA) was established in March 2007. RCEA is a private, non-profit organization dedicated to independent research in Applied and Theoretical Economics and related fields. RCEA organizes seminars and workshops, sponsors a general interest journal The Review of Economic Analysis, and organizes a biennial conference: Small Open Economies in the Globalized World (SOEGW). Scientific work contributed by the RCEA Scholars is published in the RCEA Working Papers series. The views expressed in this paper are those of the authors. No responsibility for them should be attributed t