Title of article :
Payments andliquidityunderadverseselection
Author/Authors :
Guillaume Rocheteau، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2011
Abstract :
Informationalasymmetriesregardingthefuturevalueofassetsaffecttheirrolein
exchange.Iconstructarandom-matchingeconomycomposedoftwoassets:arisk-free
bond andaLucastreewhoseterminalvalueisprivatelyknowntoitsholder.No
restrictionsareimposedonpaymentarrangements.Themainfindingsupportsa
pecking-ordertheoryofpayments:Agentsusetheirrisk-freebondsfirstinorderto
financetheirspendingshocks,andtheyusetheirinformation-sensitiveassetsonlyif
their holdingsofbondsaredepleted.Thetheoryhasimplicationsfortheoptimal
provisionofrisk-freebonds,thestructureofassetreturns,andliquidity
Journal title :
Journal of Monetary Economics
Journal title :
Journal of Monetary Economics
