Papers

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Intermediary Capital Constraints and Market Power

Jason Allen, Milena Wittwer   Jul 18,2023

Working Paper No.00110-00

We examine how intermediary capitalization affects  asset prices in a framework that allows for intermediary market power.  We introduce a... Read More

Estimating Demand Systems for Treasuries

Jason Allen,Jakub Kastl, Milena Wittwer   Jul 18,2023

Working Paper No.00111-00

Leveraging an institutional feature that Treasury auctions of different maturities are often held simultaneously, we propose  a method for estimating... Read More

The Limits of Multi-Dealer Platforms

Chaojun Wang   Nov 14,2022

Working Paper No.00084-00

On many important multi-dealer platforms, customers mostly request quotes from very few dealers. I build a model of multi-dealer platforms... Read More

Demand Disagreement

Christian Heyerdahl-Larsen, Philipp Illeditsch   Dec 13,2019

Working Paper No.00058-00

We develop an overlapping generations model with disagreement about the cross-sectional distribution of investors’ preferences and beliefs. This disagreement implies... Read More

What is the Optimal Trading Frequency in Financial Markets?

Songzi Du, Haoxiang Zhu   Jul 06,2018

Working Paper No.00039-00

This paper studies the impact of increasing trading frequency in financial markets on allocative efficiency. We build and solve... Read More