We analyze the impact of information frictions on workers' wages, contributing to the literature that tested search … theory, which has so far focused on labor market frictions in general and not specifically on information asymmetries. Using …

generates a spread between interest rates on loans and on deposits, which naturally reflects the efficiency of financial … low inflation. Hence, if monetary policy is sufficiently tight then banks end up reducing aggregate efficiency, soaking up …

We show how frictions and continuous transfers jointly affect equilibria in a model of matching in trading networks …. Our model incorporates distortionary frictions such as transaction taxes, bargaining costs, and incomplete markets. When … stability property called trail stabity. In the presence of frictions, competitive equilibria might be neither stable nor …