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frictions, such as taxicabs, trucks and bulk shipping. We illustrate the impact of two externalities: the well-known thin …/thick market externalities and what we call pooling externalities. We characterize analytically the conditions for efficiency, show …
Persistent link: https://www.econbiz.de/10012481494
frictions, such as taxicabs, trucks and bulk shipping. We illustrate the impact of two externalities: the well-known thin …/thick market externalities and what we call pooling externalities. We characterize analytically the conditions for efficiency, show …
Persistent link: https://www.econbiz.de/10013307044
Classic models of fire-sales that emphasize liquidity-constrained natural buyers can-notfully account for the asset fire-sales during the Financial Crisis of 2008. I present a modelto demonstrate that fire-sales may happen even when there is a sizable pool of naturalbuyers and in the absence of...
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It is challenging to explain the collapse in the price of subprime mortgage-backed securities (MBS) during the Financial Crisis of 2008, using the existing models of fire-sale. I present amodel to demonstrate that fire-sales may happen evenwhen there is a relatively sizable pool of natural...
Persistent link: https://www.econbiz.de/10012098197
It is challenging to explain the collapse in the price of subprime mortgage-backed securities (MBS) during the Financial Crisis of 2008, using the existing models of fire-sale. I present a model to demonstrate that fire-sales may happen even when there is a relatively sizable pool of natural...
Persistent link: https://www.econbiz.de/10012021779