Market liquidity, asset prices and welfare
This paper presents an equilibrium model for the demand and supply of liquidity and its impact on asset prices and welfare. We show that when constant market presence is costly, purely idiosyncratic shocks lead to endogenous demand of liquidity and large price deviations from fundamentals. Moreover,...
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| Format: | Electronic Book |
| Language: | English |
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Cambridge, Mass. :
National Bureau of Economic Research,
2008
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| Series: | Working paper series (National Bureau of Economic Research) ;
working paper no. 14058 |
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Internet
This item is not available through BorrowDirect. Please contact your institution’s interlibrary loan office for further assistance.Massachusetts Institute of Technology
| Call Number: |
H11.N27534 no.14058 |
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