Logo
Munich Personal RePEc Archive

Why Ten $1's Are Not Treated as a $10

Huang, Pidong and Igarashi, Yoske (2013): Why Ten $1's Are Not Treated as a $10.

[thumbnail of MPRA_paper_46623.pdf]
Preview
PDF
MPRA_paper_46623.pdf

Download (236kB) | Preview

Abstract

We study the stability of monetary steady states in a random matching model of money where money is indivisible, the bound on individual money holding is finite, and the trading protocol is buyer take-it-or-leave-it offers. The class of steady states we study have a non-full-support money-holding distribution and are constructed from the steady states of Zhu (2003). We show that no equilibrium path converges to such steady states if the initial distribution has a different support.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.