Financial Intermediaries and Transaction Costs

Autor:	Jos van Bommel, Margarita Samartín Sáenz, Augusto Hasman
Rok vydání:	2009
Předmět:	jel:D91 Transaction cost Financial Intermediation Overlapping Generations Liquidity Financial intermediary jel:E43 Portfolio Financial system Business Overlapping generations model Duration (project management) Liquidity risk jel:G21 Market liquidity
Zdroj:	SSRN Electronic Journal.
ISSN:	1556-5068
DOI:	10.2139/ssrn.1343974
Popis:	We present an overlapping generations model with spatial separation and agents who face liquidity risk to investigate the widely held belief that financial intermediaries exist because they save on transaction costs. We find that if agents only use a pure exchange mechanism, they engage in active portfolio duration rebalancing even when they do not need to consume. An intergenerational financial intermediary reduces the number of rebalancing transactions by catering to a diversified its client base. Our model also shows transaction costs can dampen cyclicality in exchange economies, and that intermediated economies are less cyclical still.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::f61be22aff5531640ed23394fa856c3a https://doi.org/10.2139/ssrn.1343974 Zobrazit plný text záznamu