Monetary general equilibrium with transaction costs
نویسندگان
چکیده
منابع مشابه
Monetary general equilibrium with transaction costs
Commodity money arises endogenously in a general equilibrium model with separate budget constraints for each transaction. Transaction costs imply differing bid and ask (selling and buying) prices. The most liquid good—with the smallest proportionate bid/ask spread—becomes commodity money. General equilibrium may not be Pareto efficient. If zero-transaction-cost money is available then the equil...
متن کاملWhy Is There Money? Convergence to a Monetary Equilibrium in a General Equilibrium Model with Transaction Costs by Ross
This paper presents a class of examples where a nonmonetary economy converges in a tatonnement process to a monetary equilibrium. Exchange takes place in organized markets characterized by an array of trading posts where each pair of goods may be traded for one another. A barter equilibrium with m commodities is characterized by m(m-1)/2 commodity pair trading posts, most of which host active t...
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Identical products being sold at different prices in different locations is a common phenomenon. Price differences might occur due to various reasons such as shipping costs, trade restrictions and price discrimination. This is modelled in traditional market models by adding a production that transfers the goods from one location to another. However, this approach is not always satisfactory sinc...
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متن کاملA Dynamic Equilibrium Model of Real Exchange Rates with General Transaction Costs ∗
We study the behavior of real exchange rates in a two-country dynamic equilibrium model. In this model, consumers can only consume domestic goods but can invest costlessly in capital stocks of both countries. Nevertheless, transporting goods between the two countries is costly and, hence, the rebalancing of the capital stock can only happen finitely often. We propose a realistic cost structure ...
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ژورنال
عنوان ژورنال: Journal of Mathematical Economics
سال: 2003
ISSN: 0304-4068
DOI: 10.1016/s0304-4068(03)00051-x