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An Empirical Equilibrium Model of a Decentralized Asset Market

Author

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  • Alessandro Gavazza

    (New York University)

Abstract

I construct and estimate a search-and-bargaining model of a decentralized market to quantify the effects of trading frictions on asset allocations and asset prices, and to quantify the effects of intermediaries that facilitate trade. Using U.S. business aircraft data, I find that trading frictions generate moderate inefficiencies in this market, and dealers play an important role in reducing frictions.

Suggested Citation

  • Alessandro Gavazza, 2010. "An Empirical Equilibrium Model of a Decentralized Asset Market," 2010 Meeting Papers 379, Society for Economic Dynamics.
    • Handle: RePEc:red:sed010:379
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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