determine asset liquidity. In our model, two asset suppliers try to profit from the liquidity services their assets confer …. Asset liquidity is indirect in the sense that assets can be sold for money in over-the-counter (OTC) secondary markets … liquidity of two assets. Asset demand curves can slope upward for evenmodest degrees of increasing returns in the matching …

rates of return to compensate agents for their relative lack of liquidity. Consistent with empirical findings, our model …

state to compensate agents for their relative lack of liquidity. Second, since the difference in the yield of short and long … liquidity. …

by the degree of liquidity in the secondary asset market. …

portfolios, but liquidity comes at a cost: inflation. The OTC market serves as a secondary asset market, in which agents can … rebalance their positions depending on their liquidity needs. Hence, a contribution of our paper is to provide a micro …

rates of return to compensate agents for their relative lack of liquidity. Consistent with empirical findings, our model …

state to compensate agents for their relative lack of liquidity. Second, since the difference in the yield of short and long … liquidity. …