This essay surveys the new monetarist approach to liquidity. Work in this literature strives for
empirical and policy relevance, plus rigorous foundations. Questions include: What is …

This essay surveys the literature on directed search and competitive search equilibrium,
covering theory and a variety of applications. These models share features with traditional …

We extend Duffie et al.'s (2005) search-theoretic model of over-the-counter (OTC) asset
markets, allowing for a decentralized inter-dealer market with arbitrary heterogeneity in …

We develop a model where agents can allocate their wealth between a liquid asset, which
can be used to purchase consumption goods, and an illiquid asset, which represents a …

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 …

We study a canonical model of decentralized exchange for a durable good or asset, where
agents are assumed to have time‐varying, heterogeneous utility types. Whereas the existing …

We develop a rational theory of liquidity sentiments in which the market outcome in any
given period depends on agents' expectations about market conditions in future periods. Our …

We study how asset prices are affected by the amount of liquidity that is available in over-the-
counter asset markets where dealers post prices and quantities at which they are willing to …

The foreign exchange (FOREX) market is an over‐the‐counter market characterized by
intermediation and significant bid–ask spreads. However, most of the existing international …

We build a rich panel dataset tracking two measures of housing market liquidity: time-on-
market and price dispersion. The two measures co-vary closely at seasonal and business …