Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5087067 | Journal of Accounting and Economics | 2008 | 9 Pages |
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
Haresh Sapra,