We propose a standard search and bargaining model with divisible money, in which only the random matching market opens … tractable equilibrium, called a pay‐all equilibrium , and prove its existence. Each buyer pays all the money holding as a corner … power parameter affects the distribution of the money holdings and possibly induces economic inefficiency. We propose a …

I highlight the importance of the distributional aspects of money's divisibility by comparing a search-theoretic model … with random transfers of indivisible money balances, to one with deterministic transfers of partially divisible balances …. Randomization allows price flexibility, as if money were fully divisible. Partial divisibility does not, but allows money …

unemployment is higher. We show that these correlations arise in a standard monetary search model with two shocks - productivity …

This paper investigates the possibility that wealth (holdings of money) serves as a signal of ability to produce high …

In this paper we study the inefficiencies of the monetary equilibrium and optimal monetary policies in a search economy …. We show that the same frictions that give fiat money a positive value generate an inefficient quantity of goods in each … trade and an inefficient number of trades (or search decisions). The Friedman rule eliminates the first inefficiency and the …

economic activities. This policy is analyzed in a search-theoretic model where individuals choose legal or illegal production …

This note uses monotone methods to derive two sets of comparative statics results for monetary directed search models …, regardless of the choice of matching function. Second, the seller-to-buyer ratio, output level and money demand increase as the … matching function becomes more efficient in a log-supermodular sense. I also consider an extension with endogenous search …

This paper investigates the possibility that wealth (holdings of money) serves as a signal of ability to produce high … would otherwise arise. -- Random matching ; Money holdings ; Signaling ; Distribution of wealth ; Welfare ; Divisible money …

is available. Agents choose between two trading sectors: the search and the intermediated sector. In the former, trade … double-coincidence matches. Multiple equilibria exist with the extent of costly matching endogenously determined. Money and …