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Benmelech, Efraim - 2017

Credit market freezes in which debt issuance declines dramatically and market liquidity evaporates are typically … bonds declined, and secondary credit markets became highly illiquid. In this paper we analyze liquidity in bond markets … during financial crises and compare two main theories of liquidity in markets: (1) asymmetric information and adverse …

Persistent link: https://www.econbiz.de/10012954001

Dynamic Adverse Selection : A Theory of Illiquidity, Fire Sales, and Flight to Quality

Guerrieri, Veronica - 2015

a drop in liquidity. It may also lead to a decline in the price-dividend ratio--a fire sale--and a flight to quality …

Persistent link: https://www.econbiz.de/10013037141

Liquidity Constraints and Imperfect Information in Subprime Lending

Adams, William - 2015

We present new evidence on consumer liquidity constraints and the credit market conditions that might give rise to them … the role of short-term liquidity in driving purchasing behavior, including sharp increases in demand during tax rebate …

Persistent link: https://www.econbiz.de/10012750380

Outside and Inside Liquidity

Bolton, Patrick - 2010

We consider a model of liquidity demand arising from a possible maturity mismatch between asset revenues and … consumption. This liquidity demand can be met with either cash reserves (inside liquidity) or via asset sales for cash (outside … liquidity). The question we address is, what determines the mix of inside and outside liquidity in equilibrium? An important …

Persistent link: https://www.econbiz.de/10012757585

The Problem of the Uninsured

Ehrlich, Isaac - 2012

The problem of the uninsured cannot be fully understood without considering the role of non-market alternatives to 'market insurance' called 'self-insurance' and 'self-protection' (SISP), including the public 'health care safety-net' system. We tackle the problem by formulating a...

Persistent link: https://www.econbiz.de/10013099815

An Ss Model with Adverse Selection

Leahy, John Vincent; House, Christopher L. - 2004

We present a model of the market for used cars in which agents face a fixed cost of adjustment, the magnitude of which depend on the degree of adverse selection in the secondary market. We find that, unlike typical models, the sS bands in our model contract as the variance of the shock process...

Persistent link: https://www.econbiz.de/10014140835

Selection in Health Insurance Markets and its Policy Remedies

Geruso, Michael - 2017

In this essay, we review the theory and evidence concerning selection in competitive health insurance markets and discuss the common policy tools used to address the problems it creates. We begin by outlining some important but often misunderstood differences between two types of conceptual...

Persistent link: https://www.econbiz.de/10012946493

Optimal Financing for R&D-Intensive Firms

Thakor, Richard T. - 2017

We develop a theory of optimal financing for R&D-intensive firms that uses their unique features—large capital outlays, long gestation periods, high upside, and low probabilities of R&D success—that explains three prominent stylized facts about these firms: their relatively low use of debt,...

Persistent link: https://www.econbiz.de/10012947632

Progress and Perspectives in the Study of Political Selection

Dal Bó, Ernesto - 2018

We provide a model of self-selection by candidates in a probabilistic voting environment to shed light on the forces shaping the quality of politicians from both the supply and demand sides of politics. The model highlights that the patterns of selection and the comparative statics of politician...

Persistent link: https://www.econbiz.de/10012915222

Take-Up, Drop-Out, and Spending in ACA Marketplaces

Diamond, Rebecca - 2018

The Affordable Care Act (ACA) established health insurance marketplaces where consumers can buy individual coverage. Leveraging novel credit card and bank account micro-data, we identify new enrollees in the California marketplace and measure their health spending and premium payments. Following...

Persistent link: https://www.econbiz.de/10012917600