EconPapers has moved to http://EconPapers.repec.org! Please update your bookmarks.
Equilibrium valuation of illiquid assets
John Robert Krainer Stephen F. LeRoy ()
Additional contact information
Stephen F. LeRoy: Economics Department, University of California at Santa Barbara, Santa Barbara, CA 93106, USA
, 2002, vol. 19, issue 2, pages 223-242
Economic Theory Abstract:
We develop an equilibrium model of illiquid asset valuation based on search and matching. We propose several measures of illiquidity and show how these measures behave. We also show that the equilibrium amount of search may be less than, equal to or greater than the amount of search that is socially optimal. Finally, we show that excess returns on illiquid assets are fair games if returns are defined to include the appropriate shadow prices.
Keywords: Asset pricing; Housing prices; Illiquidity; Search. (search for similar items in EconPapers)
JEL-codes: G12 D40 D83 (search for similar items in EconPapers)
Note: Received: June 25, 2000; revised version: October 24, 2000
References: Add references at CitEc Citations View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link) http://link.springer.de/link/service/journals/00199/papers/2019002/20190223.pdf (application/pdf)
Access to the full text of the articles in this series is restricted
Related works: This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:spr:joecth:v:19:y:2002:i:2:p:223-242
Ordering information: This journal article can be ordered from http://link.springer.de/orders.htm
Access Statistics for this article
Economic Theory is edited by
More articles in Economic Theory from Springer
Series data maintained by Guenther Eichhorn ().