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 …

Using dynamic models of health, mortality, and out-of-pocket medical spending (both
inclusive and net of Medicaid payments), we estimate the distribution of lifetime medical …

We build a theory of financial intermediation based on the premise that some investors are
better able to figure out the trade motives of their counterparties in bilateral meetings …

We study asset liquidity in a model where financial assets can be liquidated for money in
over-the-counter (OTC) secondary markets, in response to random liquidity needs. Traders …

We study how the strategic interaction of liquid-asset suppliers depends on the financial
market conditions that determine asset liquidity. In our model, two asset suppliers try to profit …

Trading frictions in financial markets affect more long-term than short-term bonds, generating
an upward-sloping yield curve. Long-term financing is more expensive in economies with …

An increasing share of corporate loans, a critical source of firm credit, are sold off banks'
balance sheets and actively traded in a secondary over-the-counter market. We develop a …

Monetary policy in the USA affects borrowing costs for state and local governments,
incentivizing municipal borrowing and spending, which in turn affects economic outcomes …

This paper formalizes a Nash bargaining game between two players constrained by
capacity decisions made prior to entering the negotiation. In equilibrium, strategic …

We show that trade frictions in over‐the‐counter (OTC) markets result in inefficient private
liquidity provision. We develop a dynamic model of market‐based financial intermediation …