liquidity may be related positively to the longer-term probability of default. Our empirical analysis confirms these predictions …

reserves, which are also claims on liquidity. In ordinary times, when these claims are not called on, central bank balance … sheet expansion will typically enhance the net availability of liquidity to the system. However, in times of stress when … these offsetting claims on liquidity are exercised, the demand for liquidity can be significantly more. Furthermore, liquid …

drying up of liquidity. Financial firms raise short-term debt in order to finance asset purchases. When asset fundamentals … worsen, debt induces firms to risk-shift; this limits their funding liquidity and their ability to roll over debt. Firms may … de-lever by selling assets to better-capitalized firms. Thus the market liquidity of assets depends on the severity of …

This paper solves explicitly an equilibrium asset pricing model with liquidity risk -- the risk arising from … unpredictable changes in liquidity over time. In our liquidity-adjusted capital asset pricing model, a security's required return … depends on its expected liquidity as well as on the covariances of its own return and liquidity with market return and market …

We propose and test a theory of corporate liquidity management in which credit lines provided by banks to firms are a … form of monitored liquidity insurance. Bank monitoring and resulting credit line revocations help control illiquidity …-seeking behavior by firms. Firms with high liquidity risk are likely to use cash rather than credit lines for liquidity management …

theoretical model of household behavior in economics, but does this model apply in the case of a country like Japan, which is said … version of the selfish life-cycle model and then survey the literature on household saving and bequest behavior in Japan in …-cycle model applies to at least some extent in all countries but that there is more consistent support for this model in Japan …

In this paper, I analyze a variety of evidence for Japan and, where available, for the United States on bequest … applicable in Japan than it is in the U.S., that the dynasty model is also more applicable in Japan than it is in the U.S. but … that it is not of dominant importance even in Japan, and conversely, that the altruism model is far more applicable in the …