The paper of NES Professor Anna Obizhaeva "Adverse Selection and Liquidity: From Theory to Practice" was presented by her coauthor Professor Albert S. Kyle from the University of Maryland, College Park at the Nobel Symposium in Stockholm. The main topic of the Symposium was Money and Banking.
“Our paper is about the connection between liquidity, the asymmetry of information and the course of time on financial markets. We point to some general principle of how to formulate the predictions of theoretical models better: the predictions have to be formulated solely with the use of variables which both do not vary greatly and therefore can be seen as constants, or can be easily measured and evaluated on the data. This principle allows to highlight predictions in the context of the simplest models that can be helpful on practice”, - said Anna Obizhaeva.
Leading economists of the world participate in the Symposium that is held every four years. This year Albert Kyle, Andrei Shleifer, Atif Mian, Barry Eichengreen, Ben Bernanke, Gary Gorton, Darrell Duffy, Jeremy Stein, John Geanakoplos, Douglas Diamond, Carmen Reinhart, Kenneth Rogoff, Mark Gertler, Martin Eichenbaum, Michael Woodford, Nobuhiro Kiyotaki, Raghuram Rajan, Ricardo Caballero, Stephanie Schmitt-Grohe, Harald Uhlig, and Nobel laureates Bength Holmström and Robert Lukas took part in the Symposium.
The symposium is organized by the Nobel Committee jointly with Swedish House of Finance.
The link to the video of the presentation is here.
Read more about the event here.