Acharya, Viral V. (contributor); Viswanathan, S. (contributor) - 2007
Moral Hazard, Collateral and Liquidity1
Viral V. Acharya
London Business School
and CEPR
vacharya@london.edu
S … incentives to take on excessive
risks and are thus rationed when they attempt to borrow in order to meet liquidity shocks. The … market-clearing price exhibits cash-in-
the-market pricing and depends on the entire distribution of liquidity shocks in the …