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Are Lemons Sold First? Dynamic Signaling in the Mortgage Market
Adelino, Manuel - 2019
A central result in the theory of adverse selection in asset markets is that informed sellers can signal quality and … obtain higher prices by delaying trade. This paper provides some of the first evidence of a signaling mechanism through trade …
Persistent link: https://www.econbiz.de/10012900310
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Signaling and Employer Learning with Instruments
Aryal, Gaurab - 2019
and 30% to education signaling workers' ability.Institutional subscribers to the NBER working paper series, and residents …
Persistent link: https://www.econbiz.de/10012869536
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Firm-Specific Information and the Efficiency of Investment
Chari, Anusha - 2006
We use a new firm-level dataset to examine the efficiency of investment in emerging economies. In the three-year period following stock market liberalizations, the growth rate of the typical firm's capital stock exceeds its pre-liberalization mean by an average of 5.4 percentage points....
Persistent link: https://www.econbiz.de/10012780226
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Cream Skimming in Financial Markets
Bolton, Patrick - 2011
assets entrepreneurs put up for sale. Thanks to their information advantage and valuation skills, dealers are able to provide …
Persistent link: https://www.econbiz.de/10013129218
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Valuation, Adverse Selection, and Market Collapses
Fishman, Michael J. - 2012
We study a market for funding real investment in which valuation creates information on which adverse selection can … occur. Unlike in previous models, higher amounts of valuation are associated with lower market prices and so greater returns … to valuation, and this strategic complementarity in the capacity to do valuation generates multiple equilibria. In this …
Persistent link: https://www.econbiz.de/10013100990
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Liquidity and Asset Prices : A Unified Framework
Vayanos, Dimitri - 2010
We examine how liquidity and asset prices are affected by the following market imperfections: asymmetric information, participation costs, transaction costs, leverage constraints, non-competitive behavior and search. Our model has three periods: agents are identical in the first, become...
Persistent link: https://www.econbiz.de/10013151396
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Information Asymmetry, Information Precision, and the Cost of Capital
Lambert, Richard A. - 2010
The consequences of information differences across investors in capital markets are still much debated. This paper examines the relation between information differences across investors and the cost of capital, and makes three points. First, in models of perfect competition, information...
Persistent link: https://www.econbiz.de/10012757545
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Liquidity as Social Expertise
Kurlat, Pablo D. - 2015
This paper proposes a theory of liquidity dynamics. Illiquidity results from asymmetric information. Observing the … perpetuates illiquidity. Liquidity falls in response to unexpected events that lead agents to question their valuation models …
Persistent link: https://www.econbiz.de/10013023683
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An Information-Based Model of Foreign Direct Investment : the Gains from Trade Revisited
Razin, Assaf; Sadka, Efraim; Yuen, Chi-Wa - 2021
Foreign direct investment (FDI) is observed to be a predominant form of capital flows to emerging economies, especially when they are liquidity-constrained internationally during a global financial crisis. The financial aspects of FDI are the focus of the paper. We analyze the problem of...
Persistent link: https://www.econbiz.de/10013231578
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Private Information, Human Capital, and Optimal "Home Bias" in Financial Markets
Ehrlich, Isaac - 2010
By allowing for imperfectly informed markets and the role of private information, we offer new insights about observed deviations of portfolio concentrations in domestic relative to foreign risky assets, or "home bias", from what standard finance models predict. Our model ascribes the "bias" to...
Persistent link: https://www.econbiz.de/10013148668