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Crises and Liquidity in Over-the-Counter Markets

Lagos, Ricardo; Weill, Pierre-Olivier; Rocheteau, Guillaume - National Bureau of Economic Research (NBER) - 2009

positions that require small reallocations. In such circumstances, the market allocative efficiency can increase if the …

Persistent link: https://www.econbiz.de/10008627111

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

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

setting. The experiments replicate an OTC market similar to the one used in monetary and financial economics (Shi, 1995 …

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

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-the-counter (OTC) markets during crises. We emphasizes two OTC frictions: finding counterparties takes time, and trade is bilateral and involves bargaining. We model a crisis as a shock...

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

On the coexistence of money and higher-return assets and its social role

Hu, Tai-Wei; Rocheteau, Guillaume - In: Journal of Economic Theory 148 (2013) 6, pp. 2520-2560

This paper adopts mechanism design to investigate the coexistence of fiat money and higher-return assets. We consider an economy with pairwise meetings where fiat money and risk-free capital compete as means of payment, as in [28]. The trading mechanism in pairwise meetings is chosen among all...

Persistent link: https://www.econbiz.de/10011043029

Aggregate Unemployment and Household Unsecured Debt

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

extend the Mortensen-Pissarides model to include a goods market with search and financial frictions. Households, who have … endogenous and depends on firms' market power in the goods market and the availability of unsecured credit to consumers. As a …

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

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

The cost of inflation: A mechanism design approach

Rocheteau, Guillaume - In: Journal of Economic Theory 147 (2012) 3, pp. 1261-1279

I apply mechanism design to quantify the cost of inflation that can be attributed to monetary frictions alone. In an environment with pairwise meetings, the money demand that is consistent with an optimal, incentive feasible allocation takes the form of a continuous correspondence that can fit...

Persistent link: https://www.econbiz.de/10010576554

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 …

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

Liquidity Provision, Interest Rates, and Unemployment

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

extend the Mortensen-Pissarides model of the labor market by adding an over-the-counter (OTC) market. Trades in the OTC … market are collateralized with liquid assets, which are created through the financing of firms and by some public entity. As … provision of liquidity to the OTC market and the need to keep the cost of financing firms low. When the unemployment is …

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