Secondary markets for long-term assets might be illiquid due to adverse selection. In a model in which moral hazard is confined to project initiation, I find that: (1) when agents expect a liquidity dry-up on such markets, they optimally choose to self-insure through the hoarding of...

An update of the author's financial survival guide takes into account the dramatic economic shifts that are reshaping America and provides insights and information to help survive the current economic downturn