We present a model of financial market liquidity provided by financially constrained intermediaries. We show that market liquidity increases with the level of intermediary capital.We also characterize conditions under which intermediaries play a stabilizing or destabilizing role in markets. Finally, we sketch a number of areas, including welfare and public policy, on which the model can shed light
Market liquidity is typically characterized by a number of ad hoc metrics, such as depth (or market ...
We study an incentive model of ®nancial intermediation in which ®rms as well as intermediaries are c...
Financial intermediation transforms short-term liquid assets into long-term capital assets. As a res...
We present a model of financial market liquidity provided by financially constrained intermediaries....
This paper examines the errect of liquidity prden'nce on investment, output, and prices in competiti...
This paper studies a mechanism design model of \u85nancial intermediation. There are two information...
We provide a model that links an asset’s market liquidity (i.e., the ease with which it is traded) a...
We introduce intermediation frictions into a Lucas (1978) asset pricing model in order to study the ...
We develop a model in which the capital of the intermediary sector plays a critical role in determin...
Preliminary and incomplete draft We model financial market liquidity as provided by financially cons...
We provide a model that links a security’s market liquidity — i.e., the ease of trading it — and tra...
We provide a model that links an asset's market liquidity -i.e., the ease with which it is trad...
This paper studies a Diamond-Dybvig model of providing insurance against unobservable liquidity shoc...
Abstract We propose a dynamic theory of financial intermediaries as collateralization specialists th...
It is widely believed that the resilience of the stock market and its ability to accurately set pric...
Market liquidity is typically characterized by a number of ad hoc metrics, such as depth (or market ...
We study an incentive model of ®nancial intermediation in which ®rms as well as intermediaries are c...
Financial intermediation transforms short-term liquid assets into long-term capital assets. As a res...
We present a model of financial market liquidity provided by financially constrained intermediaries....
This paper examines the errect of liquidity prden'nce on investment, output, and prices in competiti...
This paper studies a mechanism design model of \u85nancial intermediation. There are two information...
We provide a model that links an asset’s market liquidity (i.e., the ease with which it is traded) a...
We introduce intermediation frictions into a Lucas (1978) asset pricing model in order to study the ...
We develop a model in which the capital of the intermediary sector plays a critical role in determin...
Preliminary and incomplete draft We model financial market liquidity as provided by financially cons...
We provide a model that links a security’s market liquidity — i.e., the ease of trading it — and tra...
We provide a model that links an asset's market liquidity -i.e., the ease with which it is trad...
This paper studies a Diamond-Dybvig model of providing insurance against unobservable liquidity shoc...
Abstract We propose a dynamic theory of financial intermediaries as collateralization specialists th...
It is widely believed that the resilience of the stock market and its ability to accurately set pric...
Market liquidity is typically characterized by a number of ad hoc metrics, such as depth (or market ...
We study an incentive model of ®nancial intermediation in which ®rms as well as intermediaries are c...
Financial intermediation transforms short-term liquid assets into long-term capital assets. As a res...