Lemons Markets and the Transmission of Aggregate Shocks
研究资产市场逆向选择如何放大总体冲击对投资的影响，并导致流动性周期性变化，对理解经济波动和金融摩擦有用。
I study a dynamic economy featuring adverse selection in asset markets. Borrowing constrained entrepreneurs sell past projects to finance new investment, but asymmetric information creates a lemons problem. I show that this friction is equivalent to a tax on financial transactions. The implicit tax rate responds to aggregate shocks, generating amplification in the response of investment and cyclical variation in liquidity.