rationed when they attempt to borrow in order to meet liquidity shocks. The rationed firms can optimally pledge cash as …-in-the-market pricing and depends on the entire distribution of liquidity shocks in the economy. As moral hazard intensity varies … market and funding liquidity and deep discounts observed in prices during crises that follow good times. …

a novel dataset, we document that this sell-off appears to have generated significant liquidity risk for market … actual downgrade and reversing sharply thereafter. We show that a measure of liquidity risk faced by corporate bond market … portion of this excess co-movement. Additional robustness checks suggest that this relationship between the liquidity risk …

channel, we perform an empirical analysis of Russian bank liquidity in 1994 on the basis of bank data. The paper concludes … that the huge excess reserves of Russian banks in 1994 were at least partially due to excess liquidity in the banking … system. This means that banks preferred to hold liquidity rather than to grant loans. The hypothesis that the credit crunch …

leveraged banks’ precautionary demand for liquidity. When adverse asset shocks materialize, a bank’s ability to roll over debt … is impaired because of agency problems associated with high leverage. In turn, a bank’s propensity to hoard liquidity is …Financial crises are associated with reduced volumes and extreme levels of rates for term inter-bank transactions, such …

An enormous number of empirical papers have estimated technical efficiency, the distance of firms inside a frontier …, following the model of Farrell (1957). We propose a theory that explains the distance these empirical papers seek to measure …. The theory is based on the idea that workers can bargain low ‘effort’ (high crew sizes etc.) if they and the firm have …

emerge: (i) any positive impact of ownership change is predominantly due to change in technical efficiency, not scale effects …

reform and free trade and by thus enhancing macroeconomic efficiency at full employment. Second, the static output gain from …