Showing 1 - 10 of 95
This paper examines the production aspect of money to bridge between the search-theoretic models and the canonical … Walrasian growth models. In this paper, we argue that money can generate real effects via technology choice (high vs. low), we … model explicitly the pattern of exchanges to explore through which channels money affects technology choice. We inquire (i …
Persistent link: https://www.econbiz.de/10005130199
. However, the Friedman rule is Pareto optimal. It requires to set the gross growth rate of the money supply equal to the … discount factor of the most patient agents. Second, we look at the real effects of a money supply shock. In contrast to …
Persistent link: https://www.econbiz.de/10005130236
We introduce and solve a new class of static portfolio choice problems, where only the best realized alternative matters. A decision maker must simultaneously choose among independent ranked options, and the better alternatives have a lower chance of panning out. Each choice is costly, and just...
Persistent link: https://www.econbiz.de/10005342200
We study how firm boundaries are affected by the reduction in search costs when business-to-business electronic markets … are adopted. Our paper analyzes a multi-tier industry in which upstream parts suppliers incur procurement search costs … integrates search theory into the hidden-action principal-agent model and characterize the optimal contract, showing that the …
Persistent link: https://www.econbiz.de/10005063689
search frictions. We consider a homogeneous population where each agent, in every period, has a choice between specializing … partners. They may be found in a decentralized search market, but search takes time. Merchants set up trading posts where they … merchant's trading post must be discovered through search, producers who are informed of the location of a trading post have …
Persistent link: https://www.econbiz.de/10005702580
In this paper, we consider a dynamic New Keynesian model of the small open economy in the light of bounded rationality. This entails private agents and the central bank updating their beliefs about the laws of motion of inflation, the output gap and real exchange rate when forming their optimal...
Persistent link: https://www.econbiz.de/10005702553
This paper uses the neoclassical growth model to identify the effects of technological change on the US business cycle. In the model there are two sources of technological change: neutral, which affects the production of all goods homogeneously, and investment-specific. Investment-specific...
Persistent link: https://www.econbiz.de/10005063585
This work introduces a rigorous set-theoretic foundation of bilateral matching mechanisms and studies their properties in a systematic manner. By providing a unified framework to study ilateral matching mechanisms, we formalize how different spatial/informational constraints can be implemented...
Persistent link: https://www.econbiz.de/10005063736
This paper develops a search-theoretic model of the cross-sectional distribution of asset returns. It abstracts from …
Persistent link: https://www.econbiz.de/10005328954
We study the impact on asset prices of illiquidity associated with search and bargaining in an economy in which agents … find each other more easily. Prices become Walrasian as investors' or marketmakers' search intensities get large …. Endogenizing search intensities yields natural welfare implications. Information can fail to be revealed through trading when …
Persistent link: https://www.econbiz.de/10005328973