Huang, Pidong (2012): A comment on: 'Efficient propagation of shocks and the optimal return on money'. Published in: Journal of Economic theory , Vol. 147, No. 1 (2012)
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Abstract
Lotteries are introduced into Cavalcanti and Erosa (2008) [2], a version of Trejos and Wright (1995) [4] with aggregate shocks. Lotteries improve welfare and eliminate the two notable features of the optimum with deterministic trades: over-production and history-dependence. Moreover, the optimum can be supported by buyer take-it-or-leave-it offers.
| Item Type: | MPRA Paper |
|---|---|
| Original Title: | A comment on: 'Efficient propagation of shocks and the optimal return on money' |
| Language: | English |
| Keywords: | Random matching model of money; Aggregate shock; Optimal allocation; History-dependence; Lottery |
| Subjects: | E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E30 - General |
| Item ID: | 46621 |
| Depositing User: | Pidong Huang |
| Date Deposited: | 30 Apr 2013 10:12 |
| Last Modified: | 28 Sep 2019 16:38 |
| References: | A. Berentsen, M. Molico, R. Wright Indivisibilities, lotteries, and monetary exchange J. Econ. Theory, 107 (2002), pp. 70–94 R. Cavalcanti, A. Erosa Efficient propagation of shocks and the optimal return on money J. Econ. Theory, 142 (2008), pp. 128–148 R. Cavalcanti, N. Wallace A model of private bank-note issue Rev. Econ. Dynam., 2 (1999), pp. 104–136 A. Trejos, R. Wright Search, bargaining, money and prices |
| URI: | https://mpra.ub.uni-muenchen.de/id/eprint/46621 |
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