Liquidity, Efficiency, and Bank Bailouts
研究政府如何通过发行证券提供流动性来救助银行体系，分析私人流动性供给的社会效益与成本，并论证政府干预的必要性。
Governments can efficiently provide liquidity, as when the banking system is bailed out. We study a model in which not all assets can be used to purchase all other assets at every date. Agents sometimes want to sell projects. The market price of the projects sold depends on the supply of liquidity, which is determined in general equilibrium. While private liquidity provision is socially beneficial since it allows valuable reallocations, it is also socially costly since liquidity suppliers could have made more efficient investments ex ante. There is a role for the government to supply liquidity by issuing government securities.