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    Liquidity preference and information

    Kapur, Sandeep (2010) Liquidity preference and information. Working Paper. Birkbeck College, University of London, London, UK.

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    Abstract

    This paper explores the link between anticipated information and a preference for liquidity in investment choices. Given a subjective ordering of investment portfolios by their liquidity, we identify a sufficient condition under which the prospect of finer resolution of uncertainty creates a preference for more liquid positions. We then show how this condition might arise naturally in some standard classes of sequential decision problems.

    Metadata

    Item Type: Monograph (Working Paper)
    Additional Information: BWPEF 1008
    Keyword(s) / Subject(s): Liquidity preference, information
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Management
    Depositing User: Administrator
    Date Deposited: 21 Jun 2013 09:37
    Last Modified: 21 Jun 2013 09:37
    URI: http://eprints.bbk.ac.uk/id/eprint/7547

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