Governments can efficiently provide liquidity, as when the banking system is bailed out. We study a model in which not all assets be used to purchase other at every date. Agents sometimes want sell projects. The market price of projects sold depends on supply determined general equilibrium. While private liquidity provision socially beneficial since it allows valuable reallocations, also costly suppliers could have made more efficient investments ex ante. There role for government by issuing...

ABSTRACT Costly information acquisition makes it rational for investors to obtain important economic news with only limited frequency or accuracy. We show that this inattention may make over‐ underinvest. In addition, the optimal trading strategy is “myopic” respect future and find nonmonotonic in accuracy investment horizon. Furthermore, when both are endogenized, an investor a higher risk aversion longer horizon chooses less frequent but more accurate periodic updates.

Abstract Using microlevel panel data and a difference-in-differences identification strategy, we study the effect of political uncertainty on household stock market participation. We find that households significantly reduce their participation reallocate funds to safer assets during periods increased prior gubernatorial elections. The decline in is related households’ response elevated asset risk incentive hedge labor income risk. In situations where remains high after elections,...

We develop a new theory of money and banking based on the old story in which goldsmiths start accepting deposits for safe keeping, then their liabilities begin circulating as media exchange, they making loans. first discuss history. present model where agents can open bank accounts write checks. The equilibrium means payment may be cash, checks, or both. Sometimes multiple equilibria exist. Introducing banks increases set parameters is valued–thus, are complements. also derive microfounded...

This paper explores the integration and development mode of advanced manufacturing industry in Guangdong, Hong Kong Macao Greater Bay Area industrial chain Daipo County, Guangdong Province, context rural revitalisation strategy. By analysing status quo overview experience law two are summarised. It is found that docking synergistic development, technological innovation upgrading, infrastructure construction public service optimisation key factors to promote integrated chain. Taking...

Partial ablation of the superior colliculus (SC) at birth in hamsters compresses retinocollicular map, increasing amount visual field represented each SC location. Receptive sizes single neurons are maintained, however, preserving receptive properties prelesion condition. The mechanism that allows to restrict number convergent retinal inputs and thus compensate for induced brain damage is unknown. In this study, we examined role N-methyl-d-aspartate (NMDA) receptors controlling convergence....

There is a tenuous link between market efficiency and economic in that stock prices are more informative when the information has less social value. We investigate this context of CEO turnover. Our theoretical model predicts that, board's monitoring intensity informed trader's decision jointly endogenized, price informativeness negatively related to effort. empirical tests provide supporting evidence for negative effect. Moreover, using passage Sarbanes–Oxley Act (SOX) as quasi-natural...

Mutual funds typically invest a disproportionately large portion of their portfolio in one industry (main industry). We present simple theoretical model to demonstrate that better mutual fund managers make larger investments the important supplier/customer industries related main industry. Consistent with our theory, empirical tests on sample show investment is positively associated performance and plays more significant role explaining than Furthermore, positive relation between obtains...

This paper studies the dynamic change of volatility spillovers between several major international financial markets during global COVID-19 pandemic using Diebold and Yilmaz's connectedness index. We found that total spillover in this March reached its highest level recent ten years, while developed to worst stage April. Results directional show American British stock are main transmitters pandemic, Chinese Japanese markets, as well GBP/USD exchange rate recipients. The pairwise is larger...

Central banking is intimately related to liquidity provision banks during times of crisis, the lender-of-last-resort function. This activity arose endogenously in certain systems. Depositors lack full information about value bank assets so that macroeconomic downturns they monitor their by withdrawing a panic. The likelihood panics depends on industrial organization system. Banking systems with many small, undiversified banks, are prone and failures, unlike few big heavily branched well...

Trade in securities markets is conducted by agents acting for principals, using “mark-to-market” contracts whereby performance assessed security market prices. We endogenize contract choices, information production, informed trading, and price informativeness. But there a externality. Prices are informative only because other principals induce their to trade based on privately produced information. The agent-traders then have an incentive coordinate shirk. less informative, reducing the...

One important function of banks is to issue liabilities, like demand deposits, that are relatively safe and also liquid (usable as means payment). We introduce risk theft a safe-keeping role for into monetary theory. This provides general equilibrium framework analyzing banking in historical contemporary contexts. The model can generate concurrent circulation cash bank liabilities media exchange (inside outside money), yields novel policy implications. For example, negative nominal interest...

Stock prices are more informative when the information has less social value.Speculators with limited resources making costly (private) production decisions must decide to produce about some firms and not others.We show that producing trading on private is most profitable in stocks of poor corporate governance -precisely because it will be acted upon -and at better governance.To extent stock price used for disciplining CEO by board directors, informed trader a reduced incentive first...