Secrets of Finances and Payday Loans

Foucault, Kadan and Kandel (2005) develop a model for a limit order market where there are only strategic liquidity traders and the choice between limit and market orders depends only on their degree of impatience. This model focuses on one of the dimensions of liquidity, namely immediacy. Traders who want to trade as soon as [...]

Changes in risk appetite seem to depend on the level of risk appetite in the preceding month. Up- and downswings of risk appetite are driven by investors’ perceptions. If risky assets have outperformed for some time, investors tend to expect a continuation of this outperformance. Conversely, during times of underperformance of risky assets, investors apparently [...]