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Aggregate Unemployment and Household Unsecured Debt

Bethune, Zachary; Rocheteau, Guillaume; Rupert, Peter - In: Review of Economic Dynamics 18 (2015) 1, pp. 77-100

borrowing limits depend on the sophistication of the financial system, the frequency of liquidity shocks, and the rate of return …

Persistent link: https://www.econbiz.de/10011160660

Financial frictions, the housing market, and unemployment

Branch, William A.; Petrosky-Nadeau, Nicolas; … - Federal Reserve Bank of San Francisco - 2014

We develop a two-sector search-matching model of the labor market with imperfect mobility of workers, augmented to incorporate a housing market and a frictional goods market. Homeowners use home equity as collateral to finance idiosyncratic consumption opportunities. A financial innovation that...

Persistent link: https://www.econbiz.de/10011082685

Limelight on dark markets: an experimental study of liquidity and information

Berentsen, Aleksander; McBride, Michael; Rocheteau, … - Institut für Volkswirtschaftslehre, … - 2013

The goal of this paper is to study how informational frictions affect asset liquidity in OTC markets in a laboratory …

Persistent link: https://www.econbiz.de/10010817295

Liquidity Provision, Interest Rates, and Unemployment

Rocheteau, Guillaume; Rodriguez-Lopez, Jose Antonio - Department of Economics, University of California-Irvine - 2013

heterogeneity across private assets in order to illustrate how a shock to liquidity demand can generate collateral expansion. …This paper develops a model of the public and private provision of liquidity and its relation to unemployment. We … a result, the real interest rate is endogenous and depends on the financing needs of firms, the liquidity needs of OTC …

Persistent link: https://www.econbiz.de/10010959978

Crises and liquidity in over-the-counter markets

Lagos, Ricardo; Rocheteau, Guillaume; Weill, Pierre-Olivier - In: Journal of Economic Theory 146 (2011) 6, pp. 2169-2205

We study the efficiency of liquidity provision by dealers and the desirability of policy intervention in over … involves bargaining. We model a crisis as a shock that reduces investorsʼ asset demands, lasting until a random recovery time …. In this context, dealers can provide liquidity to investors by accumulating asset inventories. When OTC frictions are …

Persistent link: https://www.econbiz.de/10011042999

Money in Bilateral Trade

Berentsen, Aleksander; Rocheteau, Guillaume - In: Swiss Journal of Economics and Statistics (SJES) 138 (2002) IV, pp. 489-506

In this paper we compare production inefficiencies in bilateral meetings generated by two types of trading frictions: double-coincidence frictions and information frictions. For both types of frictions, money enlarges the sets of incentive-feasible allocations relative to barter. In environments...

Persistent link: https://www.econbiz.de/10005427422

Money and the Gains from Trade

Berentsen, Aleksander; Rocheteau, Guillaume - Institut für Volkswirtschaftslehre, …

This paper studies the role of money in environments where in each meeting there is a double coincidence of real wants. Traders who meet at random finance their purchases through current production, the sale of divisible money or both. It is shown that in the absence of valued money if traders...

Persistent link: https://www.econbiz.de/10005463533

Monnaie et termes de l'échange dans les modèles de prospection

Berentsen, Aleksander; Rocheteau, Guillaume - In: Revue d'économie politique 111 (2001) 3, pp. 377-399

Many search models of money rely on the double coincidence of real wants problem to generate a role for money and, for the sake of tractability, assume money to be indivisible. In this article, we study the implications of these two assumptions for the formation of the terms of trades and the...

Persistent link: https://www.econbiz.de/10011187107

Substitution des monnaies et cours légal

Lotz, Sébastien; Rocheteau, Guillaume - In: Revue d'économie politique 111 (2001) 3, pp. 459-480

This article addresses the difficulty introducing a new currency into a domestic economy. The aim is to study how a government can influence private agents in their decision to accept, or reject a new fiat currency. Different historical examples teach us that some conditions must be fulfilled...

Persistent link: https://www.econbiz.de/10011187263

Competing for Order Flow in OTC Markets

Weill, Pierre-Olivier; Lester, Benjamin; Rocheteau, … - National Bureau of Economic Research (NBER) - 2014

We develop a model of a two-sided asset market in which trades are intermediated by dealers and are bilateral. Dealers compete to attract order flow by posting the terms at which they execute trades-- which can include prices, quantities, and execution speed--and investors direct their orders...

Persistent link: https://www.econbiz.de/10010951340