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Persistent link: https://www.econbiz.de/10015056747
I develop a framework of the buildup and outbreak of financial crises in an asymmetric information setting. In equilibrium, two distinct economic states arise endogenously: "normal times", periods of modest investment, and "booms", periods of expansionary investment. Normal times occur when the...
Persistent link: https://www.econbiz.de/10011880642
Trades in today's financial system are inherently subject to settlement uncertainty. This paper explores tokenization as a potential technological solution. A token system, by enabling programmability of assets, can be designed to eradicate settlement uncertainty. We study the allocations...
Persistent link: https://www.econbiz.de/10015069781
Dealers, who strategically supply liquidity to traders, are subject to both liquidity and adverse selection costs. While liquidity costs can be mitigated through inter-dealer trading, individual dealers' private motives to acquire information compromise inter-dealer market liquidity. Post-trade...
Persistent link: https://www.econbiz.de/10012038817
Since the 2000s, economists across fields have increasingly used consumer credit reporting data for research. We … provide practical guidance on how to use these data to construct economic measures of borrowing, consumption, credit access …, financial distress, and geographic mobility. We explain what credit scores measure, and why. We highlight how researchers can …
Persistent link: https://www.econbiz.de/10015056115