NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Outside and Inside Liquidity

Patrick Bolton, Tano Santos, Jose A. Scheinkman

NBER Working Paper No. 14867
Issued in April 2009

---- Acknowledgements -----

We thank Rafael Repullo, Lasse Pedersen, Raghu Sundaram, and Doug Diamond as well as participants at workshops and seminars at several universities and at the 2008 NBER Summer Institute on Risks of Financial Institutions for their comments and suggestions. This material is based on work supported by the National Science Foundation under award SES-07-18407. Scheinkman thanks the John Simon Guggenheim Memorial Foundation. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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