Inefficient Provision of Liquidity
---- Acknowledgements -----
We would like to thank David Abrams, Eduardo Azevedo, Mathias Dewatripont, Douglas Diamond, Douglas Gale, Itay Goldstein, Christian Julliard, Jonathan Klick, Colin Mayer, Raghu Rajan, Andrei Shleifer, Jeremy Stein, Elu von Thadden, and participants at the Chicago, ILE/Wharton, LBS, and LSE finance seminars, the Oxford law and finance seminar, the NYU law and economic seminar, the University of Trento, and the NBER corporate finance meeting, for helpful comments. Oliver Hart gratefully acknowledges financial support from the U.S. National Science Foundation through the National Bureau of Economic Research. Luigi Zingales gratefully acknowledges financial support from the Center for Research in Security Prices (CRSP), the Stigler Center, and the Initiative on Global Markets at the University of Chicago. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.