The selection of the monetary equilibrium in the search-theoretic approach to money remains an open question. This paper introduces a population heterogeneity in a simple search model to study how the use of money by a subset of agents can spread itself to the economy through the bootstrap...

We present a model in which intermediaries that compete with a search market emerge. Agents are heterogenous vis à vis a production cost. They are allowed to choose both their economic activity, becoming a producer or a middleman, and their transaction strategies. Entering the intermediation...

The search-theoretic approach to monetary economics, initiated by the seminal papers of Kiyotaki and Wright [1989, 1993], offers a framework for the rationale of money, defined as an intrinsically useless object or good used as medium of exchange. This class of models has been criticized for the...

Using local administrative data from 1826 to 1936, we document the evolution of crime rates in 19th century France and we estimate the impact of a negative income shock on crime. Our identification strategy exploits the phylloxera crisis. Between 1863 and 1890, phylloxera destroyed about 40% of...

This paper shows that currency arrangements impact on credit available through default incentives. To this end we build a symmetric two-country model with money and imperfect credit market integration. With the Euro Area context in mind, we capture differences in credit market integration by...