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Strategic Inattention, Inflation Dynamics, and the Non-Neutrality of Money

Afrouzi, Hassan - 2020

How does competition affect information acquisition of firms and thus the response of inflation and output to monetary policy shocks? This paper addresses these questions in a new dynamic general equilibrium model with both dynamic rational inattention and oligopolistic competition. In the...

Persistent link: https://www.econbiz.de/10012836931

Banking Panics and the Lender of Last Resort in a Monetary Economy

Matsuoka, Tarishi - 2019

This paper studies the role of a lender of last resort (LLR) in a monetary model where a shortage of bank’s monetary reserves (or a banking panic) occurs endogenously. We show that while a discount window policy introduced by the LLR is welfare improving, it reduces the banks’ ex ante...

Persistent link: https://www.econbiz.de/10012892137

Money Creation in Decentralized Finance : A Dynamic Model of Stablecoin and Crypto Shadow Banking

Li, Ye; Mayer, Simon - 2021

Stablecoins rise to meet the demand for safe assets in decentralized finance. Stablecoin issuers transform risky reserve assets into tokens of stable values, deploying a variety of tactics. To address the questions on the viability of stablecoins, regulations, and the initiatives led by large...

Persistent link: https://www.econbiz.de/10013214344

A Monetary Equilibrium with the Lender of Last Resort

Matsuoka, Tarishi; Watanabe, Makoto - 2023

This paper studies the role of a lender of last resort (LLR) in a monetary model where a shortage of a bank’s monetary reserves (a liquidity crisis) occurs endogenously. We show that discount window lending by the LLR is welfare-improving but reduces banks’ ex-ante incentive to hold monetary...

Persistent link: https://www.econbiz.de/10014356320

Matching as a cure for underprovision of voluntary public good supply: Analysis and an example

Buchholz, Wolfgang; Cornes, Richard; Rübbelke, Dirk - 2011

Matching mechanisms are regarded as an important instrument to bring about Pareto optimal allocations in a public good … interior matching equilibrium, however, emerges only under very special conditions. But we show in this note that corner …

Persistent link: https://www.econbiz.de/10010274970

Potentially harmful international cooperation on global public good provision

Buchholz, Wolfgang; Cornes, Richard; Rübbelke, Dirk - 2012

-called matching approaches. Matching schemes are regarded as providing a promising approach to overcome undersupply of public goods … like climate protection. The functioning of matching mechanisms in a setting with an incomplete agreement, i.e. a contract … by analyzing incomplete matching agreements in the context of international climate protection. We analyse their effect …

Persistent link: https://www.econbiz.de/10010283595

Flipping a Coin: Theory and Evidence

Dwenger, Nadja; Kübler, Dorothea; Weizsäcker, Georg - 2014

We investigate the possibility that a decision-maker prefers to avoid making a decision and instead delegates it to an external device, e.g., a coin flip. In a series of experiments the participants often choose lotteries between allocations, which contradicts most theories of choice such as...

Persistent link: https://www.econbiz.de/10010352389

Do Mergers Among Multimarket Firms Create Value?

Linde, Sebastian; Siebert, Ralph - 2016

Merger value is frequently evaluated in single market contexts without considering possible gains stemming from firms' multimarket presence. This study concentrates on the question through which channels, and of which magnitude, mergers among multimarket firms create incremental value. We...

Persistent link: https://www.econbiz.de/10011555581

Preferential Trade Agreements and Global Sourcing

Ornelas, Emanuel; Turner, John L.; Bickwit, Grant - 2018

welfare under incomplete contracting and endogenous matching. Contract incompleteness implies underinvestment. That …

Persistent link: https://www.econbiz.de/10011932077

There and Back Again: A Simple Theory of Planned Return Migration

Knauth, Florian; Wrona, Jens - 2018

We present supportive empirical evidence and a new theoretical explanation for the negative selection into planned return migration between similar regions in Germany. In our model costly temporary and permanent migration are used as imperfect signals to indicate workers’ high but otherwise...

Persistent link: https://www.econbiz.de/10011957204