liquidity effects. This paper discusses the basic frictions and mechanisms underlying this new class of models and investigates … long-lasting, quantitatively significant liquidity effects, as well as persistent increases in aggregate economic activity …

Can managers influence the liquidity of their firms' shares? We use plausibly exogenous variation in the supply of … information than is mandated by market regulations and that such efforts have a sizeable and beneficial effect on liquidity. Firms … appear motivated by a desire to reduce information asymmetries between retail and institutional investors. Liquidity improves …

after a once and for all increase in liquidity. The gradual propagation mechanism produced by our model is novel in the … literature. We provide an analytical characterization of this mechanism, showing that the magnitude of the liquidity effect on …

question, focusing on liquidity constraints and uninsurable idiosyncratic risk. We consider a search model where agents use … reserves and the response of the economy tends to be larger. In this case, agents expect to be liquidity constrained and, due …