Article ID Journal Published Year Pages File Type
5089735 Journal of Banking & Finance 2012 11 Pages PDF
Abstract
► The fixed rate tender is one of the main procedures used by central banks. ► Prior research has often dismissed the procedure for encouraging overbidding. ► We consider an auction-theoretic setting with declining marginal valuations. ► Due to exposure risk, an equilibrium exists even if the amount is pre-announced. ► 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
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