Auction Design Critical for Rescue Plan
The Treasury proposes to invest $700 billion in mortgage-related securities to resolve the financial crisis, using market mechanisms such as reverse auctions to determine prices. A well-designed auction process can indeed be an effective tool for acquiring distressed assets at minimum cost to the taxpayer. However, a simplistic process could lead to higher cost and fewer securities purchased. It is critical for the auction process to be designed carefully.
|Date of creation:||2008|
|Date of revision:||2008|
|Publication status:||Published in The Economists' Voice, 5:5, www.bepress.com/ev/vol5/iss5/art5, September 2008|
|Contact details of provider:|| Postal: |
Phone: (202) 318-0520
Fax: (202) 318-0520
Web page: http://www.cramton.umd.edu
When requesting a correction, please mention this item's handle: RePEc:pcc:pccumd:08adcfrp. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Cramton)
If references are entirely missing, you can add them using this form.