Christopher Gilbert and David Vines (eds.), The World Bank: Structure and Policies Martin Shubik, The Theory of Money and Financial Institutions, Vol. I Ben Fine, Social Capital Theory versus Social Theory: Political Economy and Social Science at the Turn of the Millennium Heinz D. Kurz,...

This study models the bid-ask spread in financial markets as a function of asset price variability and order flow. The market-maker is characterized as passively accepting orders to buy and to sell a security at the market's prevailing price (plus or minus half the bid-ask spread). The bid-ask...

This study derives the monetary structure of transactions, the use of commodity or fiat money, endogenously from transaction costs in a segmented market general equilibrium model. Market segmentation means there are separate budget constraints for each transaction: Budgets balance in each...

This essay derives the monetary character of trade, the existence of a common medium of exchange, as an outcome of the economic general equilibrium in a class of examples. The setting is a (non-monetary) Arrow-Debreu Walrasian model with the addition of two constructs: multiple budget...

This paper presents a class of examples where a barter economy develops through agents' optimizing decisions into a monetary economy. A barter economy with m commodities is characterized by m(m-1)/2 commodity pair trading posts for active trade of each good for every other. Monetary equilibrium...

This paper develops and tests a new set of stochastic implications of optimal consumption behavior in the presence of borrowing constraints. In a departure from previous models, the theory shows that liquidity constraints imply a distinctive intertemporal relationship between durable and...