Chapter 1: Previous work on the denomination structure of currency treats as exogenous the distribution of transactions and the denominations held by people. Here, by way of a matching model, both are endogenous. In the model, trades in pairwise meetings alternate in time with the opportunity to...

The first essay of this dissertation presents a general equilibrium model of a finan-cial intermediary that extends the model first introduced by D. Diamond and P. Dybvig(JPE, 1983) to an infinite-horizon environment. This extension enables the relationshipbetween the real business cycle and...

Chapter 1 considers a stochastic overlapping generations model in which, at each date, a distributional shock divides the constant total endowment between a young and an old agents. Commitment cannot be externally enforced. More precisely, at each date, the young and old agents simultaneously...

This dissertation consists of three essays on consumer behavior and demand analysis. The three essays incorporate quality variation, non-market goods and habit-persistence, respectively, into the framework of traditional consumer behavior analysis from a theoretical perspective. The essays also...

What determines the firm's choice of its mechanism of investment financing? How is the choice of the firm's financing mechanism at the micro level related to the economy's business cycle movements at the aggregate level? This paper develops a model of the credit market where the equilibrium...

This paper shows that one of the defining features of Walrasian equilibrium - law of one price - characterizes equilibrium in a non-Walrasian environment of (1) random trade matching without double coincidence of wants, and (2) strategic, price-setting conduct. Money is modeled as perfectly...

This paper investigates foreign exchange trading, a phenomenon that typically accompanies international trade. A search-theoretic general equilibrium approach is adopted to study a two-country, two-currency model. For some parameter values of the model, there exist some pure-strategy equilibria...

This paper investigates the characteristics of stationary single-price equilibrium in a monetary random-matching model where agents can hold an arbitrary amount of divisible money and where production is costly. At such an equilibrium, agents’ money holdings are endogenously determined and...

This article explains how large-value payment systems work, using either gross or net settlement. The author discusses risk control in a real-time gross settlement system and analyzes the pricing of credit to provide intraday liquidity. She argues for distinguishing between...

We investigate the efficiency property of a monetary economy with spot trade. We prove a conjecture that is essentially due to Bewley ("Models of Monetary Economics" (1980); "Econometrica" 51 (1983), 1485-504). The gist is that monetary spot trading is nearly efficient ex ante in an environment...