During financial disruptions, market makers provide liquidity by absorbing external selling pressure. They buy when the pressure is large, accumulate inventories, and sell when the pressure alleviates. This paper studies optimal dynamic liquidity provision in a theoretical market setting with...

We set up and solve a spatial, dynamic equilibrium model of the housing market based on two main assumptions: households with heterogenous abilities flow in and out metropolitan areas in response to local wage shocks, and the housing supply cannot adjust instantly because of regulatory...

Information collection and processing in financial institutions is challenging. This can delay the observation by traders of the exact capital charges and constraints of their institution. During this delay, traders face preference uncertainty. In this context, we study optimal trading...

During financial disruptions, market makers provide liquidity by absorbing external selling pressure. They buy when the pressure is large, accumulate inventories, and sell when the pressure alleviates. This paper studies optimal dynamic liquidity provision in a theoretical market setting with...

This paper proposes an aggregative model of total factor productivity (TFP) in the spirit of <xref ref-type="bibr" rid="R13">Houthakker (1955-1956)</xref>. It considers a frictional labour market where production units are subject to idiosyncratic shocks and jobs are created and destroyed as in <xref ref-type="bibr" rid="R20">Mortensen and Pissarides (1994)</xref>. An...

This paper proposes an aggregative model of total factor productivity (TFP) in the spirit of Houthakker (1955-1956). It considers a frictional labour market where production units are subject to idiosyncratic shocks and jobs are created and destroyed as in Mortensen and Pissarides (1994). An...

This paper investigates the role of money in markets in which producers have private information about the quality of the goods they supply. When the fraction of high-quality producers in the economy is given, money promotes the production of high-quality goods, which improves the quality mix...

This paper investigates the role of money in markets in which producers haveprivate information about the quality of the goods they supply. When the fractionof high-quality producers in the economy is given, money promotes the productionof high-quality goods, which improves the quality mix and...