Free-riding on Liquidity in the Colombian LVPS

Number: 
977
Published: 
Classification JEL: 
C23, E42, G20
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

The functioning of large-value payment systems (LVPSs) can be affected when some of its participants voluntarily decide to delay their payments until they can totally fund them with the payments received from other participants. This behaviour, known as t