Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-52037
Hens, Thorsten; Schenk-Hoppé, Klaus Reiner (2002). Markets Do Not Select For a Liquidity Preference as Behavior Towards Risk. Working paper series / Institute for Empirical Research in Economics No. 139, University of Zurich.
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Abstract
Tobin (1958) has argued that in the face of potential capital losses on bonds it is nreasonable to hold cash as a means to transfer wealth over time. It is shown that this assertion cannot be sustained taking into account the evolution of wealth of cash holders versus non cash holders. Cash holders will be driven out of the market in the long run by traders who only use a (risky) long-lived asset to transfer wealth.
| Item Type: | Working Paper |
|---|---|
| Communities & Collections: | 03 Faculty of Economics > Department of Economics Working Paper Series > Institute for Empirical Research in Economics (former) |
| DDC: | 330 Economics |
| Language: | English |
| Date: | December 2002 |
| Deposited On: | 29 Nov 2011 22:26 |
| Last Modified: | 09 Jul 2012 07:02 |
| Series Name: | Working paper series / Institute for Empirical Research in Economics |
| ISSN: | 1424-0459 |
| Official URL: | http://www.econ.uzh.ch/wp.html |
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