scholarly journals Imperfect Competition and Market Liquidity with a Supply Informed Trader

2005 ◽  
Author(s):  
Ariadna Dumitrescu
Keyword(s):  
Imperfect Competition ◽  
Market Liquidity

scholarly journals Balance Sheet Channel with Information-Trading Frictions in Secondary Markets

2020 ◽  
Author(s):  
Vladimir Asriyan
Keyword(s):  
Imperfect Competition ◽  
Risk Sharing ◽  
Asset Price ◽  
Balance Sheet ◽  
Contingent Claims ◽  
Secondary Market ◽  
Market Liquidity ◽  
Secondary Markets ◽  
Aggregate Risk ◽  
Balance Sheet Channel

Abstract This article develops a theory of the balance sheet channel that places a central emphasis on the liquidity of secondary markets for macro-contingent claims. We show that the presence of dispersed information and imperfect competition in secondary markets, interacted with financial constraints, results in mispricing and misallocation of aggregate risk, distorts aggregate investment, and exacerbates asset price and output volatility. The magnitude of balance sheet amplification effects becomes endogenously tied to the severity of market frictions, which likely vary over time and across economies. The laissez-faire equilibrium is constrained inefficient due to a novel externality originating from rent-extracting behaviour of agents in secondary markets. Optimal corrective policy boosts secondary market liquidity through subsidies to trade in macro-contingent claims, which enhances aggregate risk-sharing and stabilizes the business cycle.

How to Assure Stable Development in Unstable Financial Environment?

2007 ◽  
pp. 4-26 ◽  
Author(s):  
M. Ershov
Keyword(s):  
Stock Market ◽  
Developed Countries ◽  
Market Liquidity ◽  
Market Mechanisms ◽  
Russian Economy ◽  
The Developed Countries ◽  
Russian Stock Market ◽  
Stable Development ◽  
Financial Environment

Growing involvement of Russian economy in international economic sphere increases the role of external risks. Financial problems which the developed countries are encountered with today result in volatility of Russian stock market, liquidity problems for banks, unstable prices. These factors in total may put longer-term prospects of economic growth in jeopardy. Monetary, foreign exchange and stock market mechanisms become the centerpiece of economic policy approaches which should provide for stable development in the shaky environment.

Phase Model of Market Economy

2005 ◽  
pp. 41-47 ◽  
Author(s):  
N. Yegorenkov ◽  
E. Kazakova ◽  
M. Starodubtseva
Keyword(s):  
Market Economy ◽  
Consumer Goods ◽  
Imperfect Competition ◽  
Phase Model ◽  
Status Change ◽  
Means Of Production

The phase model of market economy is suggested in the article. It is formalized in the cubical equation The equation takes into account the imperfections of competition and the fact that consumer goods are produced with the help of means of production. Transitions from the imperfect competition to the perfect one and visa versa yield qualitative status change of market economy.

The Effects of Institutional Block Ownership on Market Liquidity

2014 ◽  
Vol 33 (1) ◽  
pp. 83-97
Author(s):  
Kyung-shick Cho ◽  
Heon-Yong Jung
Keyword(s):  
Market Liquidity

The Term Structure of Bond Market Liquidity

2008 ◽  
Author(s):  
Ruslan Goyenko ◽  
Avanidhar Subrahmanyam ◽  
Andrey Ukhov
Keyword(s):  
Term Structure ◽  
Bond Market ◽  
Market Liquidity
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