The Industrial Organization of Financial Markets / Robert Clark, Jean-François Houde, Jakub Kastl.

Format:

Book

Author/Creator:

Clark, Robert.

Contributor:

National Bureau of Economic Research.

Houde, Jean-François.

Kastl, Jakub.

Series:

Working Paper Series (National Bureau of Economic Research) no. w29183.

NBER working paper series no. w29183

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2021.

Summary:

This chapter discusses recent developments in the literature involving applications of industrial organization methods to finance. We structure our discussion around a simple model of a financial intermediary that concentrates its attention either on (i) the retail market and hence engages in a traditional maturity transformation business by accepting funds that can be used to invest in risky projects (loans), or (ii) the investment business, financing its operations on the "wholesale" market and making markets or investing in higher return riskier projects. Our discussion is centered around the analysis of market structure and competition in each of these markets, focusing in turn on (i) primary and secondary markets for government and corporate debt, (ii) interbank loans, (iii) markets for retail funding, and (iv) credit markets, including mortgages.

Notes:

Print version record

August 2021.