Showing 1 - 10 of 55,328
Persistent link: https://www.econbiz.de/10010257921
environment with pairwise meetings, the money demand that is consistent with an optimal, incentive feasible allocation takes the …
Persistent link: https://www.econbiz.de/10010576554
frictions to incorporate the interrelationship of money, search, and endogenous price dispersion. Inflation aspects welfare …
Persistent link: https://www.econbiz.de/10009327859
We define continuous-time dynamics for exchange economies with fiat money. Traders have locally rational expectations … game involving a double-auction with limit-price orders. Money has a positive value except on optimal rest-points where it … nominal variables. Money is not neutral, either in the short-run or long-run, and a localized version of the quantity theory …
Persistent link: https://www.econbiz.de/10008461118
We propose a standard search and bargaining model with divisible money, in which only the random matching market opens … tractable equilibrium, called a pay‐all equilibrium , and prove its existence. Each buyer pays all the money holding as a corner … power parameter affects the distribution of the money holdings and possibly induces economic inefficiency. We propose a …
Persistent link: https://www.econbiz.de/10015415280
We propose a standard search and bargaining model with divisible money, in which only the random matching market opens … tractable equilibrium, called a pay-all equilibrium , and prove its existence. Each buyer pays all the money holding as a corner … power parameter affects the distribution of the money holdings and possibly induces economic inefficiency. We propose a …
Persistent link: https://www.econbiz.de/10015419698
Existing search-theoretical model of money have in general abstracted from the existence and accumulation of other … assets, in particular, capital. In this paper we present a model where the optimal portfolio allocation decision of agents is … explicitly modeled. Trade frictions in a decentralized consumption goods market give rise to an endogenous role for money …
Persistent link: https://www.econbiz.de/10005537421
This paper develops a theory of endogenously (non-)Ricardian beliefs. That is, whether Ricardian Equivalence holds in an equilibrium depends on endogenous private sector beliefs. The novelty here is a restricted perceptions viewpoint: in complex forecasting environments, agents forecast...
Persistent link: https://www.econbiz.de/10011992751
This paper shows that belief-driven economic fluctuations are a general feature of many determinate macroeconomic models. In environments with hidden state variables, forecast-model misspecification can break the link between indeterminacy and sunspots by establishing the existence of...
Persistent link: https://www.econbiz.de/10013189038
This paper studies the relationship between the availability of unsecured credit to households and unemployment. We extend the Mortensen-Pissarides model to include a goods market with search and financial frictions. Households, who have limited commitment, face endogenous borrowing constraints...
Persistent link: https://www.econbiz.de/10011160660