Title of article
Payments andliquidityunderadverseselection
Author/Authors
Guillaume Rocheteau، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2011
Pages
15
From page
191
To page
205
Abstract
Informationalasymmetriesregardingthefuturevalueofassetsaffecttheirrolein
exchange.Iconstructarandom-matchingeconomycomposedoftwoassets:arisk-free
bond andaLucastreewhoseterminalvalueisprivatelyknowntoitsholder.No
restrictionsareimposedonpaymentarrangements.Themainfindingsupportsa
pecking-ordertheoryofpayments:Agentsusetheirrisk-freebondsfirstinorderto
financetheirspendingshocks,andtheyusetheirinformation-sensitiveassetsonlyif
their holdingsofbondsaredepleted.Thetheoryhasimplicationsfortheoptimal
provisionofrisk-freebonds,thestructureofassetreturns,andliquidity
Journal title
Journal of Monetary Economics
Serial Year
2011
Journal title
Journal of Monetary Economics
Record number
846465
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