A model of financial market liquidity based on intermediary capital

Gromb, Denis and Vayanos, Dimitri ORCID: 0000-0002-0944-4914 (2010) A model of financial market liquidity based on intermediary capital. Journal of the European Economic Association, 8 (2-3). pp. 456-466. ISSN 1542-4774

Full text not available from this repository.

• Author

Abstract

We present a model of financial market liquidity provided by financially constrained intermediaries. We show that market liquidity increases with the level of intermediary capital.We also characterize conditions under which intermediaries play a stabilizing or destabilizing role in markets. Finally, we sketch a number of areas, including welfare and public policy, on which the model can shed light.

Item Type:	Article
Official URL:	http://www.eeassoc.org/index.php?site=JEEA&page=41
Additional Information:	© 2010 European Economic Association
Divisions:	Finance
Subjects:	H Social Sciences > HG Finance
JEL classification:	G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice; Investment Decisions G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing; Trading volume; Bond Interest Rates G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
Date Deposited:	30 Oct 2010 11:00
Last Modified:	01 Oct 2024 21:39
URI:	http://eprints.lse.ac.uk/id/eprint/29778

Actions (login required)

View Item