Lee, Manjong; Wallace, Neil; Zhu, Tao - In: Econometrica 73 (2005) 3, pp. 949-960
Previous work on the denomination structure of currency treats as exogenous the distribution of transactions and the denominations held by people. Here, by way of a matching model, both are endogenous. In the model, trades in pairwise meetings alternate in time with the opportunity to freely...