BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//jEvents 2.0 for Joomla//EN
CALSCALE:GREGORIAN
METHOD:PUBLISH
BEGIN:VEVENT
UID:c285a3ad7b7953bb2ec608ef86fdddae
CATEGORIES:Seminars
CREATED:20150504T183126
SUMMARY:Lunch Seminar: Tano Santos - Columbia University
DESCRIPTION;ENCODING=QUOTED-PRINTABLE:<p style="text-align: justify;"><strong>Saving Gluts, Lending Booms, Minsky
  moments</strong></p><p style="text-align: justify;">Abstract:</p><p style=
 "text-align: justify;">We investigate the effects of an increase of the sav
 ings rate on the incentives to originate high quality assets and on financi
 al fragility.<br /> Originators incur private costs when originating high q
 uality assets. Assets are subsequently distributed in two markets by the fi
 nancial sector: A private market where informed capital cream skims the bes
 t assets and a market that absorbs the pool of uninformed capital, an uninf
 ormed exchange. Informed capital matters because it provides incentives for
  good origination. Liquidity matters because it determines prices in the un
 informed exchange. Two factors determine asset quality: the level of inform
 ed capital and the price spread between the private market and the uninform
 ed exchange. If the level of informed capital is fixed an increase in the s
 avings rate increases prices in the exchange and a narrowing of the spread 
 which results in a deterioration of origination incentives. When the amount
  of informed capital is endogenously determined we show that in general ori
 gination incentives are non monotone in the savings rate. We show that when
  informed agents are able to take on leverage, leverage and the leverage ra
 tio are increasing in the savings rate. The combination of asset deteriorat
 ion and more leverage increases financial fragility.</p><p><span style="fon
 t-family: andale mono,times; font-size: 12pt;"><strong> </strong></span></p
 >
DTSTAMP:20260406T163617Z
DTSTART:20150605T130000Z
DTEND:20150605T140000Z
SEQUENCE:0
TRANSP:OPAQUE
END:VEVENT
END:VCALENDAR