Money and the Dispersion of Relative Prices
نویسندگان
چکیده
منابع مشابه
Money and Price Dispersion
We relax restrictions on the storage technology in a prototypical monetary search model to study price dispersion. When multiple units of currency can be stored, buyers and sellers enter matches with potentially different willingness to buy or sell. Across the distribution of possible bilateral matches, prices will generally differ even though agents have identical preferences and technologies....
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The positive correlation between real (PPP) investment rates and levels of PPP income across countries is one of the most robust findings of the empirical growth literature. We show that this relationship is almost entirely driven by differences in the price of investment relative to output, rather than by differences in nominal investment rates. When measured in nominal terms (i.e., at nationa...
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We introduce heterogeneous preferences into a tractablemodel ofmonetary search to generate price dispersion, and then examine the effects of money growth on price dispersion and welfare. With buyers’ search intensity fixed, we find that money growth increases the range of (real) prices and lowers welfare as agents shift more of their consumption to less desirable goods.When buyers’search intens...
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ژورنال
عنوان ژورنال: Journal of Political Economy
سال: 1981
ISSN: 0022-3808,1537-534X
DOI: 10.1086/260968