determine asset liquidity. In our model, two asset suppliers try to profit from the liquidity services their assets confer …. Asset liquidity is indirect in the sense that assets can be sold for money in over-the-counter (OTC) secondary markets … liquidity of two assets. Asset demand curves can slope upward for evenmodest degrees of increasing returns in the matching …

rates of return to compensate agents for their relative lack of liquidity. Consistent with empirical findings, our model …

Traditional liquidity measures can provide a false impression of the liquidity and stability of financial market … show that a standard measure of liquidity, the effective bid-ask spread, dramatically underestimates the true cost of …

state to compensate agents for their relative lack of liquidity. Second, since the difference in the yield of short and long … liquidity. …

reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to …

, trading costs increase strongly with dealer centrality. Investors with strong liquidity need trade with central dealers and at … times of market-wide illiquidity. Central dealers thus serve as liquidity providers of last resort. …