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Liquidity in the Cross Section of OTC Assets

Guner Velioglu, Semih Uslu   Feb 06,2024

Working Paper No.00138-00

We develop a dynamic model of a multi-asset over-the-counter (OTC) market that operates via search and bargaining and empirically test... Read More

Hysteresis in price efficiency and the economics of slow moving capital

James Dow , Jungsuk Han Francesco Sangiorgi   Jun 24,2024

Working Paper No.00140-00

Will arbitrage capital flow into markets experiencing shocks, mitigating adverse effects on price efficiency? Not necessarily. In a dynamic model... Read More

Is 24/7 Trading Better?

Alexander Ober, Patrick Blonien   Sep 02,2024

Working Paper No.00142-00

Are daily market closures still needed? In a model of large traders who manage inventory risk, we show that even... Read More

Flow-Based Arbitrage Pricing Theory

Yu An   Apr 30,2023

Working Paper No.00099-00

I introduce a new approach, model, and definition for analyzing demand effects in asset pricing. My approach generalizes arbitrage pricing,... Read More

The Need for Fees at a DEX: How Increases in Fees Can Increase DEX Trading Volume

Joel Hasbrouck,Thomas Rivera, Fahad Saleh   Jul 10,2023

Working Paper No.00080-01

We demonstrate that increasing trading fees at a decentralized exchange (DEX) can increase DEX trading volume. This result arises due... Read More

Debt Maturity Choice and Aggregate Growth

Orit Milo, Jacob Sagi   Jul 10,2023

Working Paper No.00103-00

We find that a measure of aggregate corporate debt maturity choices strongly predicts real GDP growth. The new measure compares... Read More

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

Disagreement in Collateral Valuation

Michael Woeppel, Jordan Martel   Aug 03,2023

Working Paper No.00124-00

We present a model of secured lending in which borrowers and lenders agree to disagree about collateral values. Lenders' beliefs... Read More

Economic Growth through Diversity in Beliefs

Christian Heyerdahl-Larsen,Howard Kung, Philipp Illeditsch   Aug 20,2023

Working Paper No.00126-00

We study a macro-finance model with entrepreneurs who have diverse views about the likelihood that their ideas will lead to... Read More