Showing 1 - 10 of 20
Many adverse selection models of standard one-period debt contracts are based on the following seemingly innocuous assumptions. First, entrepreneurs have private information about the quality of their return distributions. Second, return distributions are ordered by the monotone likelihood-ratio...
Persistent link: https://www.econbiz.de/10005423696
We study a financial market adverse selection model where all agents are endowed with initial wealth and choose to invest as entrepreneurs or financiers, or not to invest. We show that often a lack of outside finance leads to the emergence of financial markets where availability of outside...
Persistent link: https://www.econbiz.de/10005648911
We study the interaction between private and public funding of innovative projects in the presence of adverse-selection based financing constraints. Government programmes allocating direct subsidies are based on ex-ante screening of the subsidy applications. This selection scheme may yield...
Persistent link: https://www.econbiz.de/10005648936
We study the long standing issue of whether markets can supply banks with sufficient liquidity or whether markets … model of Holmström and Tirole (1998) on the supply of liquidity to firms. H&Ts original model analyses liquidity supply to … problems associated with transitory liquidity outflows, even absent any change in a bank's value. Our premise is that the scope …
Persistent link: https://www.econbiz.de/10005419679
Averaging the reserve requirement is often considered an efficient way to reduce volatility at the very short end of the money market yield curve. The Bank of Finland began to apply an averaging provision at the beginning of October 1995. Notably, the volatility of the overnight rate of interest...
Persistent link: https://www.econbiz.de/10005423707
We study the effects of the ECB monetary policy and the European crisis resolution policies on the 10 year sovereign bond yields of seven European countries. We find that some of the decisions have had significant impact on sovereign bond yields and have succeeded in reducing stress in the...
Persistent link: https://www.econbiz.de/10011191539
systemic risks, to analyze liquidity usage, to test or develop new system structures, and to study participants’ behavior. The …
Persistent link: https://www.econbiz.de/10010584387
This study utilises payment system data to analyse market participants’ liquidity usage and to trace interest rates … paid on overnight loans. Our aim is to examine how liquidity usage has changed during the years 2006–2/2011 and to combine …
Persistent link: https://www.econbiz.de/10009368523
speeding up the processing and settlement of payments. In a real-time environment banks face new challenges in liquidity … management. They need to plan for intraday as well as interday fluctuations in liquidity. By employing various types of hybrid … settlement structures, banks may be able to even out intraday fluctuations in liquidity demand. The aim of this study is to …
Persistent link: https://www.econbiz.de/10005648900
difference between marginal and minimum price for liquidity, when the ECB reformed its op-erational framework for monetary policy …, that when the central bank applies a quantity oriented liquidity policy, a positive tender spread may result from money …, the allotment uncertainty is shown to be significantly related to the amount of liquidity supplied in each operation …
Persistent link: https://www.econbiz.de/10005648928