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Money in Search Equilibrium, in Competitive Equilibrium, and in Competitive Search Equilibrium
Rocheteau, Guillaume; Wright, Randall - Department of Economics, University of Pennsylvania - 2003
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 …
Persistent link: https://www.econbiz.de/10005126717
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Inflation and Welfare in Models with Trading Frictions
Rocheteau, Guillaume; Wright, Randall - Department of Economics, University of Pennsylvania - 2003
We study the effects of inflation in models with various trading frictions. The framework is related to recent search …
Persistent link: https://www.econbiz.de/10005061927
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Search, Money and Capital: A Neoclassical Dichotomy, Second Version
Aruoba, S. Boragan; Wright, Randall - Department of Economics, University of Pennsylvania - 2002
Recent work has reduced the gap between search-based monetary theory and mainstream macroeconomics by incorporating … into the search model some centralized markets as well as some decentralized markets where money is essential. This paper … nests the search-theoretic monetary model and a standard neoclassical growth model as special cases. Perhaps surprisingly …
Persistent link: https://www.econbiz.de/10005102114
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Prices, Information and Learning
Shevchenko, Andrei; Araujo, Luis - Society for Economic Dynamics - SED - 2004
We consider an economy where trade is decentralized and agents have incomplete information with respect to the value of money. Agents' learning evolves from private experiences and we explore how the formation of prices interacts with learning. We show that multiple equilibria arise, and...
Persistent link: https://www.econbiz.de/10005051429
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Friedman Meets Hosios: Efficiency in Search Models of Money
Berentsen, Aleksander; Rocheteau, Guillaume; Shi, Shouyong - Institut für Volkswirtschaftslehre, …
In this paper we study the inefficiencies of the monetary equilibrium and optimal monetary policies in a search economy … trade and an inefficient number of trades (or search decisions). The Friedman rule eliminates the first inefficiency and the … order to internalize all search externalities. …
Persistent link: https://www.econbiz.de/10005184878
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The Distribution of Money and Prices in an Equilibrium with Lotteries
Berentsen, Aleksander; Camera, Gabriele; Waller, Christopher - Institut für Volkswirtschaftslehre, …
by considering randomized monetary trades in a standard search-theoretic model of money where agents can hold multiple …
Persistent link: https://www.econbiz.de/10005463523
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Money and the Gains from Trade
Berentsen, Aleksander; Rocheteau, Guillaume - Institut für Volkswirtschaftslehre, …
This paper studies the role of money in environments where in each meeting there is a double coincidence of real wants. Traders who meet at random finance their purchases through current production, the sale of divisible money or both. It is shown that in the absence of valued money if traders...
Persistent link: https://www.econbiz.de/10005463533
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Money in Bilateral Trade
Berentsen, Aleksander; Rocheteau, Guillaume - In: Swiss Journal of Economics and Statistics (SJES) 138 (2002) IV, pp. 489-506
In this paper we compare production inefficiencies in bilateral meetings generated by two types of trading frictions: double-coincidence frictions and information frictions. For both types of frictions, money enlarges the sets of incentive-feasible allocations relative to barter. In environments...
Persistent link: https://www.econbiz.de/10005427422
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Equilibrium selection in a fundamental model of money
Araujo, Luis; Guimarães, Bernardo - C.E.P.R. Discussion Papers - 2011
Fundamental models of money always exhibit autarkic equilibria where money has no value. In this paper we propose a simple procedure to select among equilibria in such models. Our procedure unveils a natural mapping between equilibrium behavior and the primitives of the economy, thus offering...
Persistent link: https://www.econbiz.de/10008854470
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On the Friedman Rule in Search Models with Divisible Money
Berentsen, Aleksander; Rocheteau, Guillaume - Institut für Volkswirtschaftslehre, …
This paper studies the validity of the Friedman rule in a search model with divisible money and divisible goods where …
Persistent link: https://www.econbiz.de/10005627792