Enrico Perotti - Latest

• Seeking Safety

  Staff working paper 2018-41 Toni Ahnert, Enrico Perotti

  The scale of safe assets suggests a structural demand for a safe wealth share beyond transaction and liquidity roles. We study how investors achieve a reference wealth level by combining self-insurance and contingent liquidation of investment. Intermediaries improve upon autarky, insuring investors with poor self-insurance and limiting liquidation.

  Content Type(s): Staff research, Staff working papers JEL Code(s): G, G2 Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk