investment, or a ""volatility trap."" Namely, big savers invest relatively little. In contrast, low volatility of permanent … shocks leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks …We study the effects of permanent and temporary income shocks on precautionary saving and investment in a ""store …

funds' trading costs to transacting shareholders. Using unique data on investor transactions in U.K. corporate bond funds …

Financial innovation has increased diversification opportunities and lowered investment costs, but has not reduced the … relative cost of active (informed) investment strategies relative to passive (less informed) strategies. What are the … public information or collect high quality, but costly, private information. Information helps avoiding excessively risky …

, monetary and fiscal issues, global liquidity, and national and international economic developments …

analyze a model of the federal funds market where uncertain liquidity flows and transaction costs induce banks to delay …

-term liquidity effects, where monetary costs act as transaction costs and the quantity theory of money is verified …We show that, in a monetary equilibrium, trade and asset prices depend on both the supply of the liquidity by the … Central Bank and the liquidity of assets and commodities. As a result, monetary aggregates are informative for the conduct of …

of a rational trader who operates in a market with transactions costs and noise trading. The level of trading affects the …

model of firm value that shows lower expected growth rate and higher volatility of cash flows following COVID-19 reduced …