Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5089735 | Journal of Banking & Finance | 2012 | 11 Pages |
Abstract
⺠The fixed rate tender is one of the main procedures used by central banks. ⺠Prior research has often dismissed the procedure for encouraging overbidding. ⺠We consider an auction-theoretic setting with declining marginal valuations. ⺠Due to exposure risk, an equilibrium exists even if the amount is pre-announced. ⺠Proxies of exposure risk are significant in both euro and sterling operations.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Christian Ewerhart, Nuno Cassola, Natacha Valla,