consumption decisions in search-theoretic models of money. Our framework potentially generates three types of inefficiencies: the …We use alternative assumptions about the divisibility of goods and money and the ability of agents to use lotteries on … money to investigate to what extent the indivisibility of money is the cause for the typically inefficient production and …

This paper investigates the role of fiat money in decentralized markets, where producers have private information about … the quality of the goods they supply. Money is divisible, terms of trade are determined endogenously, and agents can … finance their consumption with money or with real production. When the fraction of high quality producers in the economy is …

The aim of this paper is to study asset reallocation in financial markets subject to search, bargaining, and … consequence, a positive liquidity differential between money and real assets emerges, resulting in an increased demand for fiat … money, as observed since the eruption of the global financial crisis. A policy intervention replacing information sensitive …

We present a simple, finite-state search model to understand how the cross-sectional distribution of money affects its … value. We first document a network effect: the value of a given unit of money is higher when its distribution is even …. This approach is designed to be especially pertinent in the context of private issuance of money, in particular …

This paper generalizes the original random matching model of money by Kiyotaki and Wright (1989) (KW) in two aspects …

This paper uses an evolutionary approach to explain the origin of money as media of exchange in a primitive economy …

monetary theory for tractability reasons. In this paper, we fill in this gap by constructing a tractable search model of money … with a non-degenerate distribution of money holdings. We assume search to be directed in the sense that buyers know the …Dispersion of money balances among individuals is the basis for a range of policies but it has been abstracted from in …

monetary theory for tractability reasons. In this paper, we fill in this gap by constructing a tractable search model of money … with a non-degenerate distribution of money holdings. We assume search to be directed in the sense that buyers know the …Dispersion of money balances among individuals is the basis for a range of policies but it has been abstracted from in …

centralized markets after one round of decentralized trade. Given quasi-linear preferences, this makes the distribution of money … these models by assuming two rounds of trade before agents can readjust their money holdings to study a range of new … distributional effects analytically. We show that unexpected, symmetric lump-sum money injections may increase short-run output and …