restructuring and regulation of monopolies with network externalities …

We study the efficiency of dealers' liquidity provision and the desirability of policy intervention in over …' asset demands that lasts until a random recovery time. In this context, dealers can provide liquidity to outside investors …

We show that stricter bank liquidity standards can trigger unintended credit booms when there is heterogeneity in … interbank pricing power. Attempts to circumvent the regulation change the allocation of savings across institutions, eliciting …

simple regulation -- a liquidity requirement -- that corrects such an externality by affecting the interest rate on the … markets. We characterize the form of the optimal liquidity adequacy requirement for a general class of preferences. We show … that whether markets underprovide or overprovide liquidity, and whether a liquidity cap or a liquidity floor should be used …

bailouts are costly because they worsen incentives and thereby reduce welfare. We show that regulation in the form of limits on … undertake bailouts. In terms of the cyclical properties of regulation, we show that regulation should be tightest in aggregate …

subcomponents, such as the Volcker Rule. The possibility of permanently inhibiting the market making capacity of large banks, with … dire consequences in terms of under-provision of market liquidity, has been repeatedly raised. This paper presents … systematic evidence from four different estimation strategies of the absence of breakpoints in market liquidity for fixed …

liquidity-constrained debtors will respond by enough to make a reduction in debt profitable, but not by enough to make the …

assets to survive runs. Regulation similar to the liquidity coverage ratio and the net stable funding ratio (that are soon be … implemented) can change the bank's incentives so that runs are less likely. Optimal regulation would not mimic these rules …

more than long-term credit. Firms responded by cutting their short-term loans for liquidity management purposes and …, firms increase cash and cut investment. Thus, trade credit offers a substitute source of liquidity that can insulate some … firms from bank liquidity shocks …