Why Rent When You Can Buy?
Author
Abstract
Suggested Citation
DOI: 10.17016/FEDS.2017.094
Download full text from publisher
References listed on IDEAS
- Alessandro Gavazza, 2011.
"Leasing and Secondary Markets: Theory and Evidence from Commercial Aircraft,"
Journal of Political Economy, University of Chicago Press, vol. 119(2), pages 325-377.
- Gavazza, Alessandro, 2010. "Leasing and Secondary Markets: Theory and Evidence from Commercial Aircraft," MPRA Paper 28821, University Library of Munich, Germany.
- Jeffrey Lacker, 2001.
"Collateralized Debt as the Optimal Contract,"
Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(4), pages 842-859, October.
- Jeffrey M. Lacker, 1998. "Collateralized debt as the optimal contract," Working Paper 98-04, Federal Reserve Bank of Richmond.
- Madison, Florian, 2024.
"Asymmetric information in frictional markets for liquidity: Collateralized credit vs asset sale,"
Journal of Economic Dynamics and Control, Elsevier, vol. 159(C).
- Florian Madison, 2016. "Asymmetric information in frictional markets for liquidity: collateralized credit vs asset sale," ECON - Working Papers 220, Department of Economics - University of Zurich, revised Nov 2020.
- Ricardo Lagos & Randall Wright, 2005.
"A Unified Framework for Monetary Theory and Policy Analysis,"
Journal of Political Economy, University of Chicago Press, vol. 113(3), pages 463-484, June.
- Ricardo Lagos & Randall Wright, 2002. "A unified framework for monetary theory and policy analysis," Working Papers (Old Series) 0211, Federal Reserve Bank of Cleveland.
- Ricardo Lagos & Randall Wright, 2004. "A unified framework for monetary theory and policy analysis," Staff Report 346, Federal Reserve Bank of Minneapolis.
- Alessandro Gavazza & Alessandro Lizzeri & Nikita Roketskiy, 2014.
"A Quantitative Analysis of the Used-Car Market,"
American Economic Review, American Economic Association, vol. 104(11), pages 3668-3700, November.
- Gavazza, Alessandro & Lizzeri, Alessandro & Rokestkiy, Nikita, 2012. "A quantitative analysis of the used-car market," MPRA Paper 38414, University Library of Munich, Germany.
- Nikita Roketskiy & Alessandro Lizzeri & Alessandro Gavazza, 2012. "A Quantitative Analysis of the Used Car Market," 2012 Meeting Papers 173, Society for Economic Dynamics.
- Gavazza, Alessandro & Lizzeri, Alessandro & Roketskiy, Nikita, 2014. "A quantitative analysis of the used-car market," LSE Research Online Documents on Economics 55720, London School of Economics and Political Science, LSE Library.
- Piero Gottardi & Vincent Maurin & Cyril Monnet, 2019.
"A theory of repurchase agreements, collateral re-use, and repo intermediation,"
Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 33, pages 30-56, July.
- Vincent Maurin & Cyril Monnet & Piero Gottardi, 2016. "A Theory of Repurchase Agreement, Collateral Re-use, and Repo Intermediation," 2016 Meeting Papers 417, Society for Economic Dynamics.
- GOTTARDI, Piero; MAURIN, Vincent; MONNET, Cyril, 2017. "A theory of repurchase agreements, collateral re-use, and repo intermediation," Economics Working Papers ECO2017/03, European University Institute.
- Piero Gottardi & Vincent Maurin & Cyril Monnet, 2017. "A Theory of Repurchase Agreements, Collateral Re-use, and Repo Intermediation," CESifo Working Paper Series 6579, CESifo.
- Ewerhart, Christian & Tapking, Jens, 2008. "Repo markets, counterparty risk and the 2007/2008 liquidity crisis," Working Paper Series 909, European Central Bank.
- Timothy J. Kehoe & David K. Levine, 2008.
"Bankruptcy and Collateral in Debt Constrained Markets,"
Chapters, in: Roger E.A. Farmer (ed.), Macroeconomics in the Small and the Large, chapter 5,
Edward Elgar Publishing.
- Timothy J. Kehoe & David K. Levine, 2006. "Bankruptcy and collateral in debt constrained markets," Staff Report 380, Federal Reserve Bank of Minneapolis.
- Timothy J. Kehoe & David K. Levine, 2006. "Bankruptcy and Collateral in Debt Constrained Markets," NBER Working Papers 12656, National Bureau of Economic Research, Inc.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Hajime Tomura, 2013. "Repos in Over-the-Counter Markets," UTokyo Price Project Working Paper Series 005, University of Tokyo, Graduate School of Economics.
- Hajime Tomura, 2016.
"Investment Horizon and Repo in the Over‐the‐Counter Market,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 48(1), pages 145-164, February.
- Hajime Tomura, 2013. "Investment Horizon and Repo in the Over-the-Counter Market," UTokyo Price Project Working Paper Series 013, University of Tokyo, Graduate School of Economics.
- Hajime Tomura, 2014. "Investment Horizon and Repo in the Over-the-Counter Market," UTokyo Price Project Working Paper Series 037, University of Tokyo, Graduate School of Economics.
- Hajime Tomura, 2012. "On the Existence and Fragility of Repo Markets," Staff Working Papers 12-17, Bank of Canada.
- Yu Awaya & Hiroki Fukai & Makoto Watanabe, 2021. "A Model Of Collateral: Endogenizing The Borrowing Constraint," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(3), pages 1131-1151, August.
- Liu, Zehao & Sinclair, Andrew J., 2022. "Wealth, endogenous collateral quality, and financial crises," Journal of Economic Theory, Elsevier, vol. 204(C).
- Hajime Tomura, 2014. "Investment Horizon and Repo in the Over-the-Counter Market," UTokyo Price Project Working Paper Series 026, University of Tokyo, Graduate School of Economics.
- Madison, Florian, 2024.
"Asymmetric information in frictional markets for liquidity: Collateralized credit vs asset sale,"
Journal of Economic Dynamics and Control, Elsevier, vol. 159(C).
- Florian Madison, 2016. "Asymmetric information in frictional markets for liquidity: collateralized credit vs asset sale," ECON - Working Papers 220, Department of Economics - University of Zurich, revised Nov 2020.
- Yumi Saita & Chihiro Shimizu & Tsutomu Watanabe, 2013. "Aging and Real Estate Prices:Evidence from Japanese and US Regional Data," UTokyo Price Project Working Paper Series 014, University of Tokyo, Graduate School of Economics, revised Dec 2013.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Borghan Nezami Narajabad & Cyril Monnet, 2012. "Why Rent When You Can Buy? A Theory of Repurchase Agreements," 2012 Meeting Papers 647, Society for Economic Dynamics.
- Yu Awaya & Hiroki Fukai & Makoto Watanabe, 2021. "A Model Of Collateral: Endogenizing The Borrowing Constraint," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(3), pages 1131-1151, August.
- Kang, Kee-Youn, 2021. "Optimal contract for asset trades: Collateralizing or selling?," Journal of Financial Markets, Elsevier, vol. 56(C).
- Madison, Florian, 2024.
"Asymmetric information in frictional markets for liquidity: Collateralized credit vs asset sale,"
Journal of Economic Dynamics and Control, Elsevier, vol. 159(C).
- Florian Madison, 2016. "Asymmetric information in frictional markets for liquidity: collateralized credit vs asset sale," ECON - Working Papers 220, Department of Economics - University of Zurich, revised Nov 2020.
- James Chapman & Jonathan Chiu & Miguel Molico, 2011.
"Central bank haircut policy,"
Annals of Finance, Springer, vol. 7(3), pages 319-348, August.
- James Chapman & Jonathan Chiu & Miguel Molico, 2010. "Central Bank Haircut Policy," Staff Working Papers 10-23, Bank of Canada.
- S. Viswanathan & Adriano A. Rampini, 2008. "Collateral, Financial Intermediation, and the Distribution of Debt Capacity," 2008 Meeting Papers 116, Society for Economic Dynamics.
- Adriano A. Rampini, 2019.
"Financing Durable Assets,"
American Economic Review, American Economic Association, vol. 109(2), pages 664-701, February.
- Adriano Rampini, 2015. "Financing Durable Assets," 2015 Meeting Papers 915, Society for Economic Dynamics.
- Adriano A. Rampini, 2016. "Financing Durable Assets," NBER Working Papers 22324, National Bureau of Economic Research, Inc.
- Rampini, Adriano A., 2018. "Financing Durable Assets," CEPR Discussion Papers 12997, C.E.P.R. Discussion Papers.
- Dominguez, Begona & Gomis-Porqueras, Pedro, 2023. "Accessing U.S. Dollar Swap Lines: Macroeconomic Implications for a Small Open Economy," MPRA Paper 118293, University Library of Munich, Germany.
- Lester, Benjamin & Weill, Pierre-Olivier & Hugonnier, Julien, 2022.
"Heterogeneity in decentralized asset markets,"
Theoretical Economics, Econometric Society, vol. 17(3), July.
- Julien HUGONNIER & Benjamin LESTER & Pierre-Olivier WEILL, 2014. "Heterogeneity in Decentralized Asset Markets," Swiss Finance Institute Research Paper Series 14-67, Swiss Finance Institute.
- Weill, Pierre-Olivier & Hugonnier, Julien & Lester, Benjamin, 2020. "Heterogeneity in Decentralized Asset Markets," CEPR Discussion Papers 14274, C.E.P.R. Discussion Papers.
- Julien Hugonnier & Benjamin Lester & Pierre-Olivier Weill, 2019. "Heterogeneity in Decentralized Asset Markets," Working Papers 19-44, Federal Reserve Bank of Philadelphia.
- Pierre-Olivier Weill & Benjamin Lester & Julien Hugonnier, 2016. "Heterogeneity in decentralized asset markets," 2016 Meeting Papers 1014, Society for Economic Dynamics.
- Hugonnier, Julien & Lester, Ben & Weill, Pierre-Olivier, 2019. "Heterogeneity in Decentralized Asset Markets," CEPR Discussion Papers 14014, C.E.P.R. Discussion Papers.
- Julien Hugonnier & Benjamin Lester & Pierre-Olivier Weill, 2015. "Heterogeneity in decentralized asset markets," Working Papers 15-22, Federal Reserve Bank of Philadelphia.
- Julien Hugonnier & Benjamin Lester & Pierre-Olivier Weill, 2014. "Heterogeneity in Decentralized Asset Markets," NBER Working Papers 20746, National Bureau of Economic Research, Inc.
- Wright, Randall & Xiao, Sylvia Xiaolin & Zhu, Yu, 2018.
"Frictional capital reallocation I: Ex ante heterogeneity,"
Journal of Economic Dynamics and Control, Elsevier, vol. 89(C), pages 100-116.
- Randall Wright & Sylvia Xiaolin Xiao & Yu Zhu, 2019. "Frictional Capital Reallocation I: Ex Ante Heterogeneity," Staff Working Papers 19-4, Bank of Canada.
- Madison, Florian, 2019.
"Frictional asset reallocation under adverse selection,"
Journal of Economic Dynamics and Control, Elsevier, vol. 100(C), pages 115-130.
- Florian Madison, 2017. "Frictional asset reallocation under adverse selection," ECON - Working Papers 261, Department of Economics - University of Zurich, revised Jan 2018.
- Emre Ozdenoren & Kathy Yuan & Shengxing Zhang, 2023.
"Dynamic Asset-Backed Security Design,"
The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(6), pages 3282-3314.
- Ozdenoren, Emre & Yuan, Kathy & Zhang, Shengxing, 2022. "Dynamic asset-backed security design," LSE Research Online Documents on Economics 118859, London School of Economics and Political Science, LSE Library.
- Ozdenoren, Emre & Yuan, Kathy & Zhang, Shengxing, 2023. "Dynamic asset-backed security design," LSE Research Online Documents on Economics 119375, London School of Economics and Political Science, LSE Library.
- Sangyup Choi & Inkee Jang & Kee-Youn Kang & Hyunpyung Kim, 2024.
"Haircut, Interest Rate, and Collateral Quality in the Tri-Party Repo Market: Evidence and Theory,"
Working Papers
11, University of Liverpool, Department of Economics.
- Sangyup Choi & Inkee Jang & Kee-Youn Kang & Hyunpyung Kim, 2024. "Haircut, Interest Rate, and Collateral Quality in the Tri-Party Repo Market: Evidence and Theory," Working papers 2024rwp-229, Yonsei University, Yonsei Economics Research Institute.
- Infante, Sebastian, 2019. "Liquidity windfalls: The consequences of repo rehypothecation," Journal of Financial Economics, Elsevier, vol. 133(1), pages 42-63.
- Kee-Youn Kang, 2019.
"Central Bank purchases of private assets: An evaluation,"
Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 31, pages 326-346, January.
- Kee-Yong Kang, 2018. "Online Appendix to "Central Bank purchases of private assets: An evaluation"," Online Appendices 18-256, Review of Economic Dynamics.
- Kee-Youn Kang, 2018. "Code and data files for "Central Bank purchases of private assets: An evaluation"," Computer Codes 18-256, Review of Economic Dynamics.
- Saki Bigio & Liyan Shi, 2020.
"Repurchase Options in the Market for Lemons,"
NBER Working Papers
27732, National Bureau of Economic Research, Inc.
- Saki Bigio & Liyan Shi, 2021. "Repurchase Options in the Market for Lemons," EIEF Working Papers Series 2104, Einaudi Institute for Economics and Finance (EIEF), revised 2021.
- Saki Bigio & Liyan Shi, 2020. "Repurchase Options in the Market for Lemons," Working Papers 169, Peruvian Economic Association.
- Wang, Zijian, 2020. "Liquidity and private information in asset markets: To signal or not to signal," Journal of Economic Theory, Elsevier, vol. 190(C).
- Hiroshi FUJIKI, 2016. "Nontraditional Monetary Policy in a Model of Default Risks and Collateral in the Absence of Commitment," Working Papers e104, Tokyo Center for Economic Research.
- Shen, Ji & Wei, Bin & Yan, Hongjun, 2016.
"Financial Intermediation Chains in an OTC Market,"
MPRA Paper
74925, University Library of Munich, Germany.
- Ji Shen & Bin Wei & Hongjun Yan, 2018. "Financial Intermediation Chains in an OTC Market," FRB Atlanta Working Paper 2018-15, Federal Reserve Bank of Atlanta.
- Park, Hyejin, 2021. "Collateral reuse, collateral mismatch, and financial crises," The Quarterly Review of Economics and Finance, Elsevier, vol. 79(C), pages 367-380.
More about this item
Keywords
Bargaining; Bilateral matching; Over-the-counter market; Rent; Repo; Security lending; Directed search;All these keywords.
JEL classification:
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
NEP fields
This paper has been announced in the following NEP Reports:- NEP-MAC-2017-10-01 (Macroeconomics)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedgfe:2017-94. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ryan Wolfslayer ; Keisha Fournillier (email available below). General contact details of provider: https://edirc.repec.org/data/frbgvus.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.