Gu, Chao; Guzman, Mark; Haslag, Joseph - In: Journal of Monetary Economics 58 (2011) 2, pp. 172-182
Using a modified version of Freeman's (1996) payment system model, the optimal intraday rate is examined. The production set is modified to account for a non-degenerate distribution of settlements within a day. In addition to the modified production set, the consumption set is modified. A...