investment - results that are consistent with the model's predictions. -- investment ; stock market ; bubble ; dispersion …

This paper examines how risk in trading activity can affect the volatility of asset prices. We look for this … swap spread tends to converge to a long-run level, although trading risk can sometimes cause the spread to diverge from … that level. -- convergence trading ; interest rate swaps ; swap spread ; repurchase contracts ; trading risk ; volatility …

stimulating output. Agents with heterogeneous productivity can increase investment by levering up, but this increases interim … liquidity risk. In equilibrium, the more productive agents choose higher leverage, invest more, and take on higher liquidity … risk. Therefore, these agents respond less than the agents with lower productivity to monetary policy that reduces the …

--in particular, balance sheet constraints and counterparty credit risk. The empirical evidence supports the Fed's views on the … risk as the crisis evolved in 2008. I conclude that an understanding of the prevailing risk environment is necessary in …

Program (HARP). We use a competing risk model to estimate the sensitivity of default risk to downward adjustments of borrowers … an average loss given default of 35.2 percent, this lower default risk implies reduced credit losses of 134 basis points …