منابع مشابه
Self-fulfilling Liquidity Dry-ups
Secondary markets for long-term assets might be illiquid due to adverse selection. In a model in which moral hazard is confined to project initiation, I find that: (1) when agents expect a liquidity dry-up on such markets, they optimally choose to self-insure through the hoarding of non-productive but liquid assets; (2) such a response has negative externalities as it reduces ex-post market par...
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(see next page for abstract) ∗Acknowledgements: this research forms part of the European Commission TMR network project on "Financial Market Efficiency and Economic Efficiency," grant contract no. FMRXCT96-0054. I thank Julian Franks and a referee for detailed comments on the previous draft, and Margaret Bray and Thierry Foucault for discussions on an earlier version of this paper.
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ژورنال
عنوان ژورنال: The Journal of Finance
سال: 2014
ISSN: 0022-1082
DOI: 10.1111/jofi.12063