Article ID Journal Published Year Pages File Type
5087067 Journal of Accounting and Economics 2008 9 Pages PDF
Abstract
Using a model with banking and insurance sectors, Allen and Carletti show that marking-to-market interacts with liquidity pricing to exacerbate the likelihood of financial contagion between the two sectors. In this discussion, I lay out the main ingredients of their model and explain how they interact with liquidity pricing to generate financial contagion. I then discuss some limitations of their model and propose an interesting extension.
Related Topics
Social Sciences and Humanities Business, Management and Accounting Accounting
Authors
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