feature higher risk free rates, lower risk premiums on fully diversified and concentrated assets, less capital accumulation …, yet higher consumption and welfare. Exposure to undiversified firm risk can explain approximately 40% of the level and 20 …

Textbook theory assumes that firm managers maximize the net present value of future cash flows. But when you ask them …

over faster than domestic assets because the former have desirable liquidity properties, but represent inferior saving …

liquidity by quickly turning stocks into cash. We propose a trading model in which these two roles are endogenously related …: more intensive use of stocks for liquidity affects both the information and the noise about fundamentals contained in … banking system has trouble providing liquidity. We incorporate this module into a dynamic general equilibrium model to study …

We propose and test a theory of corporate liquidity management in which credit lines provided by banks to firms are a …-seeking behavior by firms. Firms with high liquidity risk are likely to use cash rather than credit lines for liquidity management … because the cost of monitored liquidity insurance increases with liquidity risk. We exploit a quasi-experiment around the …

himself trapped and forced to remain in that position because of a lack of liquidity. What are the asset-pricing implications …. Polarization causes the usual risk-return tradeo. to break down and an asset's price may have more to do with the demographics of …

that the fraction of unpriced risk in these assets is at least 85%. Extant explanations of carry strategies based on …

account for the risk premia and asset price fluctuations. In addition, the model can empirically account for the cross …

risk factor, in addition to aggregate consumption growth risk. This liquidity risk is created by binding solvency … idiosyncratic income risk. These agents can trade a complete menu of contingent claims, but they cannot commit and shares in a Lucas … negative liquidity shock when this growth rate is high and a large fraction of agents faces severely binding solvency …