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Annual Review of Economics

Volume 12, 2020

The Search Theory of Over-the-Counter Markets

Abstract

I review the recent literature that applies search-and-matching theory to the study of over-the-counter financial markets. I formulate and solve a simple model to illustrate the typical assumptions and economic forces at play in existing work. I then offer thematic tours of the literature and, in the process, discuss avenues for future research.

Keyword(s): asset pricing, JEL G11, JEL G12, JEL G21, over-the-counter markets, search frictions
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2020-08-02
2024-04-16
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The Search Theory of Over-the-Counter Markets
Annual Review of Economics 12, 747 (2020); https://doi.org/10.1146/annurev-economics-091819-124829
/content/journals/10.1146/annurev-economics-091819-124829
/content/journals/10.1146/annurev-economics-091819-124829
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