scholarly journals A Market-Based Solution for Fire Sales and Other Pecuniary Externalities

2020 ◽  
Author(s):  
Robert M. Townsend ◽  
Weerachart T. Kilenthong
Keyword(s):  
Fire Sales ◽  
Pecuniary Externalities

scholarly journals A Market Based Solution for Fire Sales and Other Pecuniary Externalities

2016 ◽  
Author(s):  
Weerachart Kilenthong ◽  
Robert Townsend
Keyword(s):  
Fire Sales ◽  
Pecuniary Externalities

scholarly journals International Credit Flows and Pecuniary Externalities

2015 ◽  
Vol 7 (1) ◽  
pp. 297-338 ◽  
Author(s):  
Markus K. Brunnermeier ◽  
Yuliy Sannikov
Keyword(s):  
Incomplete Markets ◽  
Production Capacity ◽  
Capital Controls ◽  
Terms Of Trade ◽  
Equilibrium Outcome ◽  
Short Term ◽  
Stochastic Growth ◽  
Fire Sales ◽  
Pecuniary Externalities ◽  
International Credit

This paper develops a dynamic two-country neoclassical stochastic growth model with incomplete markets. Short-term credit flows can be excessive and reverse suddenly. The equilibrium outcome is constrained inefficient due to pecuniary externalities. First, an undercapitalized country borrows too much since each firm does not internalize that an increase in production capacity undermines their output price, worsening their terms of trade. From an ex ante perspective each firm undermines the natural “terms of trade hedge.” Second, sudden stops and fire sales lead to sharp price drops of illiquid capital. Capital controls or domestic macro-prudential measures that limit short-term borrowing can improve welfare. (JEL F32, F43, G15, O41)

Insider Trading and Option Grant Timing in Response to Fire Sales (and Purchases) of Stocks by Mutual Funds

CFA Digest ◽  
2011 ◽  
Vol 41 (4) ◽  
pp. 26-28
Author(s):  
Michael Kobal
Keyword(s):  
Mutual Funds ◽  
Insider Trading ◽  
Fire Sales

Asset Fire Sales and Purchases and the International Transmission of Funding Shocks

CFA Digest ◽  
2013 ◽  
Vol 43 (2) ◽  
pp. 54-56
Author(s):  
Victoria Rati
Keyword(s):  
International Transmission ◽  
Fire Sales

Crises, Liquidity Shocks, and Fire Sales at Investment Banks

2013 ◽  
Author(s):  
Nicole M. Boyson ◽  
Jean Helwege ◽  
Jan Jindra
Keyword(s):  
Investment Banks ◽  
Liquidity Shocks ◽  
Fire Sales

Financing Capacity and Fire Sales: Evidence from Bank Failures

2013 ◽  
Author(s):  
Raghuram G. Rajan ◽  
Rodney Ramcharan
Keyword(s):  
Bank Failures ◽  
Fire Sales

Bank Capital Structure, Fire Sales, and the Social Value of Deposits

2017 ◽  
Author(s):  
Douglas M. Gale ◽  
Tanju Yorulmazer
Keyword(s):  
Capital Structure ◽  
Social Value ◽  
Bank Capital ◽  
Fire Sales ◽  
The Social

Mutual Funds' Fire Sales and the Real Economy: Evidence from Hurricanes

2020 ◽  
Author(s):  
Roberto Tubaldi
Keyword(s):  
Mutual Funds ◽  
Real Economy ◽  
The Real ◽  
Fire Sales

scholarly journals Asset Fire Sales (and Purchases) in Equity Markets

2005 ◽  
Author(s):  
Joshua D. Coval ◽  
Erik Stafford
Keyword(s):  
Equity Markets ◽  
Fire Sales
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