-intermediated volume. Thus, the otherwise strong and positive relation between liquidity costs and trading volume effectively shrinks to …We devise a simple model of liquidity demand and supply to deepen the understanding of dealers’ liquidity provision in …' intermediation capacity is constrained the cost of liquidity provision increases disproportionately relative to dealer …

Illiquidity measures appear to be related to monthly realized returns but do they impact long-run costs of capital (CoC … do not find evidence that liquidity risk and the probability of informed trade influence CoC. Overall, our results …