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dc.creatorWei, Bin
dc.creatorYue, Vivian Z.
dc.date.accessioned2020-07-21T17:58:04Z
dc.date.available2020-07-21T17:58:04Z
dc.date.created2020-04-27
dc.identifier.issn0165-1889spa
dc.identifier.otherhttps://www.sciencedirect.com/science/article/pii/S0165188920300841?via%3Dihub#keys0001spa
dc.identifier.urihttp://hdl.handle.net/20.500.12010/10874
dc.format.extent20 páginasspa
dc.format.mimetypeapplication/pdfspa
dc.publisherJournal of Economic Dynamics and Controleng
dc.sourcereponame:Expeditio Repositorio Institucional UJTLspa
dc.sourceinstname:Universidad de Bogotá Jorge Tadeo Lozanospa
dc.subjectLiquidity backstopspa
dc.subjectDebt runLender of last resortspa
dc.titleLiquidity backstops and dynamic debt runsspa
dc.type.localArtículospa
dc.subject.lembSíndrome respiratorio agudo gravespa
dc.subject.lembCOVID-19spa
dc.subject.lembSARS-CoV-2spa
dc.subject.lembCoronavirusspa
dc.rights.accessrightsinfo:eu-repo/semantics/openAccessspa
dc.type.hasversioninfo:eu-repo/semantics/acceptedVersionspa
dc.identifier.doihttps://doi.org/10.1016/j.jedc.2020.103916spa
dc.description.abstractenglishLiquidity backstops can mitigate runs. In this paper we develop a dynamic model of debt runs based on He and Xiong (2012) to identify, both conceptually and quantitatively, the value of a liquidity backstop for its run-mitigating role. For the purpose of identification, we focus on the municipal bond markets for variable rate demand obligations and auction rate securities. Based on the run episodes in these markets during the financial crisis of 2007-09 and the calibrated model, we find that the value of a liquidity backstop is about 14.5 basis points per annum. Our findings have important policy implications regarding the effectiveness of liquidity backstops in ameliorating problems of financial instability.spa


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