Chiu, Jonathan (contributor); Molico, Miguel (contributor) - 2007
liquidity management. Agents face uninsurable idiosyncratic uncertainty regarding trading opportunities in a decentralized goods … market and must pay a fixed cost to rebalance their liquidity holdings in a centralized liquidity market. By endogenizing the … participation decision in the liquidity market, this model endogenizes the responses of velocity, output, the degree of market …