Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-51907
Ewerhart, Christian; Feubli, Patricia (2009). Lemons and Money Markets. Working paper series / Institute for Empirical Research in Economics No. 455, University of Zurich.
This paper identifies simple conditions for monotone comparative statics of a unique equilibrium in the Akerlof-Wilson model. Separate conditions apply to trade volume and price. Trade volume increases when supply becomes both stronger and more elastic. In contrast, price decreases when supply becomes both stronger and less elastic. An application to the interbank market suggests surprisingly specific measures to address elevated term rates and market breakdown.
257 downloads since deposited on 29 Nov 2011
86 downloads since 12 months
|Item Type:||Working Paper|
|Communities & Collections:||03 Faculty of Economics > Department of Economics
Working Paper Series > Institute for Empirical Research in Economics (former)
|Dewey Decimal Classification:||330 Economics|
|Deposited On:||29 Nov 2011 20:09|
|Last Modified:||09 Jul 2012 05:01|
|Series Name:||Working paper series / Institute for Empirical Research in Economics|
Users (please log in): suggest update or correction for this item
Repository Staff Only: item control page