Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152976
Authors: 
Stracca, Livio
Year of Publication: 
2005
Series/Report no.: 
ECB Working Paper 542
Abstract: 
This paper proposes a general equilibrium model with heterogeneous households and a financial market where each financial instrument provides liquidity services in addition to enabling a transfer of purchasing power over time. Importantly, liquidity services may be asymmetric according to whether the financial instrument is held as an asset or as a liability, and are also agentspecific. The main purpose of the study is to develop an analytical framework and a language for evaluating the effect of (broadly defined) liquidity factors on equilibrium rates of return and intertemporal allocation.
Subjects: 
financial market
heterogeneity
liquidity services
Real interest rates
JEL: 
E40
E43
Document Type: 
Working Paper

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