Private and public liquidity provision in over‐the‐counter markets
研究发现场外市场的交易摩擦导致私人流动性供给效率低下，通过拥堵外部性影响市场流动性，为流动性监管和公共供给提供了理论依据，并揭示了量化宽松的传导渠道。
We show that trade frictions in over‐the‐counter (OTC) markets result in inefficient private liquidity provision. We develop a dynamic model of market‐based financial intermediation with a two‐way interaction between primary credit markets and secondary OTC markets. Private allocations are generically inefficient due to a congestion externality operating through market liquidity in the OTC market. This inefficiency can lead to liquidity that is suboptimally low or high compared to the second best, providing a rationale for the regulation and public provision of liquidity. Moreover, our model characterizes a transmission channel of quantitative easing or tightening that operates through liquidity premia.