Similar Search Results

Rumors and Runs in Opaque Markets : Evidence from Panic of 1907

Fohlin, Caroline - 2016

impact of information asymmetry during the liquidity freeze and market run of October 1907 - one of the most severe financial …

Persistent link: https://www.econbiz.de/10012981593

Illiquidity and Under-Valuation of Firms

Gale, Douglas M. - 2012

We study a competitive model in which market incompleteness implies that debt-financed firms may default in some states of nature and default may lead to the sale of the firms' assets at fire sale prices when markets are illiquid. This incompleteness is the only friction in the model and the...

Persistent link: https://www.econbiz.de/10013116475

Debt Recovery in Firm Liquidations : Do Liquidation Trustees Matter?

Cepec, Jaka - 2016

Insolvency systems play a crucial role in protection of creditor rights, yet micro-level empirical evidence on the functioning of insolvency regimes worldwide is sparse. We investigate whether creditors' recovery of outstanding claims, a measure of ex-post efficiency of an insolvency regime,...

Persistent link: https://www.econbiz.de/10012982336

Limit-Order Submission Strategies under Asymmetric Information

Menkhoff, Lukas - 2013

This paper provides evidence that informed traders dominate the response of limit-order submissions to shocks in a pure limit-order market. In the market we study, informed traders are highly sensitive to spreads, volatility, momentum and depth. By contrast, uninformed traders are relatively...

Persistent link: https://www.econbiz.de/10013094725

Even Small Trade Costs Restore Efficiency in Tax Competition

Becker, Johannes - 2010

We introduce transport cost of trade in products into the classical Zodrow and Mieszkowski (1986) model of capital tax competition. It turns out that even small levels of transport cost lead to a complete breakdown of the seminal result, the underprovision of public goods. Instead, there is a...

Persistent link: https://www.econbiz.de/10013136648

Multimarket Linkages, Cartel Discipline and Trade Costs

Agnosteva, Delina - 2018

We build a model of tacit collusion between firms that operate in multiple markets to study the effects of trade costs. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are strategically linked via the incentive compatibility constraint....

Persistent link: https://www.econbiz.de/10012926563

Multi-Pollutant Point-Nonpoint Trading with Participation Decisions : The Role of Transaction Costs

Reeling, Carson - 2018

High transaction costs and thin participation plague water quality trading and prevent markets from delivering expected efficiency gains. Point sources generate a single pollutant, while nonpoint sources generate multiple, complementary pollutants. We develop a dynamic search model of...

Persistent link: https://www.econbiz.de/10012911045

Trade Cost Reduction and Foreign Direct Investment in a Vertical Structure

Haque, M. Emranul - 2017

Although empirical evidence shows that a lower trade cost and higher FDI may go hand in hand, the well-known “proximity-concentration” hypothesis does not support this view. We provide a simple explanation for this phenomenon. We show that a lower trade cost on the intermediate goods (with...

Persistent link: https://www.econbiz.de/10012943399

Endogenous Systemic Liquidity Risk

Cao, Jin - 2013

Traditionally, aggregate liquidity shocks are modelled as exogenous events. Extending our previous work (Cao & Illing …, 2008), this paper analyses the adequate policy response to endogenous systemic liquidity risk. We analyse the feedback … between lender of last resort policy and incentives of private banks, determining the aggregate amount of liquidity available …

Persistent link: https://www.econbiz.de/10013095988

Basel Accord and Financial Intermediation : The Impact of Policy

Berka, Martin - 2013

This paper studies loan activity in a context where banks must follow Basel Accord-type rules and acquire financing from households. Loan activity typically decreases when entrepreneurs' investment returns decline, and we study which type of policy could revigorate an economy in a trough. We...

Persistent link: https://www.econbiz.de/10013091686

1
2
3
4
5
6
7
8
9
10
Next
Last