Market liquidity is typically characterized by a number of ad hoc metrics, such as depth, volume, bid-ask spreads etc … grounds. In this paper we propose a welfare-based denition of liquidity and characterize its relationship to the usual proxies … intermediaries pursue prot opportunities by providing intermediation services (i.e. "liquidity") in exchange for an endogenous fee …

identical, implying that the concentration of liquidity in one asset is socially desirable. At the same time, too many buyers …

argument for the existence of safe harbours is liquidity in the financial market. Safe harbour rules do away with a number of … legal concepts, notably those attached to traditional security, and thereby allow for an exponentiation of liquidity … liquidity. To the extent that safe harbours accelerate contagion in terms of crisis, which in principle is a valid argument …

Market liquidity is typically characterized by a number of ad hoc metrics, such as depth (or market impact), volume … the existing metrics on welfare grounds. In this paper we propose a welfare-based denition of liquidity and characterize … intermedia- tion services (i.e. \liquidity") in exchange for an endogenous fee. Our model is well suited to study the contagion …

that they must deliver the asset they borrowed. As a result, that asset enjoys both greater liquidity, measured by search … times, and a higher lending fee ("specialness"). Liquidity and specialness translate into price premia that are consistent …

We provide a model that links an asset's market liquidity; i.e., the ease with which it is traded; and traders' funding … liquidity, i.e. the ease with which they can obtain funding. Traders provide market liquidity, and their ability to do so …, depend on the assets' market liquidity. We show that, under certain conditions, margins are destabilizing and market …

imperfections on liquidity. Asset owners seek to obtain liquidity by selling their claims on future cash-flows, on which they have … private information. Our analysis encompasses both the cases of competitive and monopolistic liquidity supply. In the optimal … a monopolistic liquidity supplier to exclude them from trade in order to better extract rents from issuers with low cash-flows. …

debt markets, and an over-the-counter secondary debt market with search frictions. Liquidity in this market is related to …