I develop and analyze a monetary model with liquid equity. Equity is a claim on the profits of firms acting as sellers … in the search-and-matching market. Buyers in that market devote search to obtain matches with firms, and use the equity … to relax a liquidity constraint. The dual nature of equity in the search-and-matching market entails a strategic …

I develop and analyze a monetary model with liquid equity. Equity is a claim on the profits of firms acting as sellers … in the search-and-matching market. Buyers in that market devote search to obtain matches with firms, and use the equity … to relax a liquidity constraint. The dual nature of equity in the search-and-matching market entails a strategic …