A Model of Financial Structure and Financial Fragility
构建了一个信息不对称模型，分析银行与证券市场两种金融结构，发现证券市场成本低但存在柠檬问题，均衡可能因微小参数变化而出现利率、资产价格和市场结构的非连续变化，即金融脆弱性。
This paper presents an asymmetric information model of financial structure. The model has two types of financial institutions: banks and securities markets, both of which can hold loans made to firms to finance investment projects. The securities markets have lower costs, but they have a lemons problem because the banks have better information. The result is an equilibrium that can exhibit fragility in the sense that small parameter changes, such as changes in the cost advantage of the securities market or the risk structure of loans, can lead to discontinuous changes in interest rates, asset prices, and market structure.