Gavazza, Alessandro 
ORCID: 0000-0001-9236-5813
(2012)
An empirical equilibrium model of a decentralized asset market.
Working papers series.
Social Sciences Research Network.
Abstract
I estimate a search-and-bargaining model of a decentralized market to quantify the effects of trading frictions on asset allocations and asset prices, and to quantify the effects of intermediaries that facilitate trade. Using business-aircraft data, I find that, relative to the Walrasian benchmark, 20.3 percent of the assets are misallocated, and prices are 6.61-percent lower. Dealers play an important role in reducing frictions: In a market with no dealers, 32.3 percent of the assets would be misallocated, and prices would decrease by 5.25 percent.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Official URL: | http://www.ssrn.com/en/ |
| Additional Information: | © 2012 The Author |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce |
| Date Deposited: | 18 Feb 2014 16:39 |
| Last Modified: | 13 Sep 2024 20:22 |
| URI: | http://eprints.lse.ac.uk/id/eprint/55727 |
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