We show that very little is needed to create liquidity under-supply in equilibrium. Credit constraints on demand by … themselves can cause an under-supply of liquidity, without the uncertainty, intermediation, asymmetric information or complicated …

We define liquidity as the flexibility to move goods (money) from one project (investment) to another. We show that … credit constraints on demand by themselves can cause an under-supply of liquidity, without the uncertainty, intermediation … liquidity is like a commodity: according to our offsetting distortions principle, a distortion in the demand for any good can …

outcomes during systemic liquidity crises. I examine firms that had raised capital through foreign public issuances, to analyze … their outcomes during two types of systemic liquidity crises: a domestic crisis and a foreign crisis. I find that firms with … foreign financing were less liquidity constrained and had better outcomes during the domestic liquidity crisis. They were also …

Volume-based liquidity ratios suffer from potential measurement bias due to share restriction and may misrepresent … actual liquidity. In this paper, we develop a modified metric, the free-float liquidity ratio. We argue that this measure is … better suited to estimate liquidity in the presence of trading constraints as can be found in family-owned businesses or …