Liquidity and Leverage
Citations
3,033 citations
Cites background from "Liquidity and Leverage"
...Adrian and Shin (2009) confirm this spiral empirically for investment banks....
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1,585 citations
Cites background from "Liquidity and Leverage"
...As documented by Adrian and Shin [2010], broker-dealers differ from other types of institutional investors by their active pro-cyclical management of leverage: Expansions in broker-dealer assets are associated with increases in leverage as broker-dealers take advantage of greater balance sheet capacity; conversely, contractions in their assets are associated with the de-leveraging of their balance sheets....
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1,428 citations
1,407 citations
1,212 citations
Cites background from "Liquidity and Leverage"
...Mark-to-market rules, when coupled with constant regulatory capital ratios, forced financial institutions to take dramatic measures to reduce their balance sheets, exacerbating fire sales, and deleveraging (Adrian and Shin 2008)....
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...(This is hard to prove empirically, as the output gap is not directly observable....
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References
4,286 citations
3,997 citations
"Liquidity and Leverage" refers background in this paper
...Electronic copy available at: http://ssrn.com/abstract=1139857...
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...Gromb and Vayanos (2002) draw on the theme in Shleifer and Vishny (1997) on the importance of collateral constraints for leveraged traders....
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3,795 citations
"Liquidity and Leverage" refers background in this paper
...The first is the increased credit that operates through the borrower’s balance sheet, where increased lending comes from the greater creditworthiness of the borrower (Bernanke and Gertler (1989), Kiyotaki and Moore (1997, 2005))....
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3,638 citations
3,358 citations