Conventional wisdom is that inflation makes people spend money faster, trying to get rid of it like a “hot potato,” and … this is a channel through which inflation affects velocity and welfare. Monetary theory with endoge- nous search intensity … exchange and hence reduces search effort. We replace search intensity with a free entry (participation) decision for buyers - i …

We compare three pricing mechanisms for monetary economies: bargaining (search equilibrium); price taking (competitive … equilibrium); and price posting (competitive search equilibrium). We do this in a framework that, in addition to considering … different mechanisms, extends existing work on the microfoundations of money by allowing a general matching technology and …

We study the effects of inflation in models with various trading frictions. The framework is related to recent search … alternative mechanisms for price formation: bargaining, price taking, and posting. Both the value of money per transaction and …

into the search model some centralized markets as well as some decentralized markets where money is essential. This paper …Recent work has reduced the gap between search-based monetary theory and mainstream macroeconomics by incorporating … nests the search-theoretic monetary model and a standard neoclassical growth model as special cases. Perhaps surprisingly …

. We begin assuming workers are ex ante heterogeneous, and highlight a flaw with this approach: if search is costly, the … search costs, and delivers equilibria equilibrium wage dispersion. However, we prove the law of two prices holds: generically …

We extend simple search-theoretic models of crime, unemployment and inequality to incorporate on-the-job search. This … of crime, on-the-job search models are more relevant empirically as well as more interesting in terms of the types of …