preferences of future trading counter-parties causes randomness in future resale prices that we call liquidity risk. It is natural … to suppose that investors are asymmetrically informed about liquidity risk. Through a process of liquidity discovery …, trading volumes and prices reveal private information about future counter-party preferences. The liquidity discovery process …

only in the bubble period remains for city banks. The results would indicate that regional banks had been consistently … following irrational herd behavior, while city banks were frantic enough to herd only in the bubble period in the late 1980s …This paper investigates whether Japanese banks had been following herd behavior in the domestic loan market from 1975 …

only in the bubble period remains for city banks. The results would indicate that regional banks had been consistently … following irrational herd behavior, while city banks were frantic enough to herd only in the bubble period in the late 1980s …This paper investigates whether Japanese banks had been following herd behavior in the domestic loan market from 1975 …

How do the liquidity functions of banks affect investment and growth at different stages of economic development? How … in a liquid storage technology or in a partially illiquid Cobb Douglas technology. By pooling liquidity risk, banks play … issues using an overlapping generations growth model where agents, who experience idiosyncratic liquidity shocks, can invest …

-trade durations at times of relatively uninformative market orders, which is consistent with liquidity traders concentrating their …

Firms in poor countries often tend to rely on alternative sources of financing different than banks. We show that … borrowing constraints lead to financial arrangements between firms that can amplify the effect of liquidity or productivity … liquidity shocks might have on the whole economy. Our results show that in a carefully calibrated model, the effects of these …