Managing markets for toxic assets

被引:9
|
作者
House, Christopher L. [1 ,2 ]
Masatlioglu, Yusufcan [1 ]
机构
[1] Univ Michigan, Dept Econ, Ann Arbor, MI 48109 USA
[2] NBER, Cambridge, MA 02138 USA
关键词
Liquidity; Adverse selection; TARP; ADVERSE SELECTION; BANK RUNS; IMPERFECT INFORMATION; INVESTMENT DECISIONS; LIQUIDITY; INSURANCE; QUALITY; LEMONS; CREDIT; COSTS;
D O I
10.1016/j.jmoneco.2014.10.001
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
A model in which banks trade toxic assets to raise funds for investment is analyzed. Toxic assets generate an adverse selection problem and, consequently, the interbank asset market provides insufficient liquidity. Investment is inefficiently low because acquiring funding requires banks to sell high-quality assets for less than their "fair" value. Equity injections reduce liquidity and may be counterproductive as a policy for increasing investment. Paradoxically, if it is directed to firms with the greatest liquidity needs, an equity injection will reduce investment further. Asset purchase programs, like the Public-Private Investment Program, often have favorable impacts on liquidity, investment and welfare. (C) 2014 Elsevier B.V. All rights reserved.
引用
收藏
页码:84 / 99
页数:16
相关论文
共 50 条
  • [31] A dynamic taxonomy for managing knowledge assets
    Li, Sheng-Tun
    Tsai, Ming-Hong
    TECHNOVATION, 2009, 29 (04) : 284 - 298
  • [32] The economics of nature: Managing biological assets
    Perman, R
    ENVIRONMENTAL & RESOURCE ECONOMICS, 2002, 23 (04): : 472 - 474
  • [33] Managing risky assets - mitophagy in vivo
    Narendra, Derek P.
    JOURNAL OF CELL SCIENCE, 2021, 134 (19)
  • [34] MANAGING DETERIORATION AND INTEGRITY OF AGEING ASSETS
    Henry, Neil S.
    HAZARDS XXII: PROCESS SAFETY AND ENVIRONMENTAL PROTECTION, 2011, (156): : 646 - 648
  • [35] Performance measurement for managing infrastructure assets
    von Winterfeldt, D
    Zimmerman, R
    HEALTH MONITORING AND MANAGEMENT OF CIVIL INFRASTRUCTURE SYSTEMS, 2001, 4337 : 28 - 36
  • [36] Managing your asset information assets
    Snitkin, Sid
    HYDROCARBON PROCESSING, 2008, 87 (07): : 17 - 17
  • [37] MANAGING PENSIONS ASSETS UNDER ERISA
    KOPP, BS
    AMERICAN BAR ASSOCIATION JOURNAL, 1975, 61 (NOV): : 1421 - 1423
  • [38] Managing assets through portal technology
    Fiske, TJ
    CHEMICAL PROCESSING, 2002, 65 (02): : 10 - 10
  • [39] MANAGING AGEING FLEXIBLE PIPE ASSETS
    Botto, Adriana
    O'Sullivan, Enda
    Banti, Celine
    PROCEEDINGS OF THE 27TH INTERNATIONAL CONFERENCE ON OFFSHORE MECHANICS AND ARCTIC ENGINEERING - 2008, VOL 3, 2008, : 591 - 599
  • [40] The economics of nature: Managing biological assets
    Batie, SS
    AGRICULTURAL ECONOMICS, 2003, 29 (01) : 113 - 114