RANDOM MATCHING AND MONEY IN THE NEOCLASSICAL GROWTH MODEL: SOME ANALYTICAL RESULTS

Neoclassical Growth Model

4 Quantitative Analysis 7 4.1 Steady state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4.2 Optimal saving rate at steady state . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4.3 Balanced growth path . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4.4 Calibration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Stochastic Neoclassical Growth Model

Equilibrium portfolios in the neoclassical growth model

This paper studies equilibrium portfolios in the traditional neoclassical growth model under uncertainty with heterogeneous agents and dynamically complete markets. Preferences are restricted to be quasi-homothetic. Heterogeneity across agents is due to two reasons. First, agents may have di¤erent shares of the representative ...rm at date 0. Secondly, agents may also have di¤erent preferences ...

Private Money and Reserve Management in a Random Matching Model1

We introduce an element of centralization in a random matching model of money that allows for private liabilities to circulate as media of exchange. Some agents, which we identify as banks, are endowed with the technology to issue notes and to record-keep reserves with a central clearinghouse, which we call the treasury. The liabilities are redeemed according to a stochastic process that depend...

Search , Money and Capital : A Neoclassical Dichotomy ¤

Recent work has reduced the gap between search-based monetary theory and mainstream macroeconomics by incorporating into the search model some centralized markets as well as some decentralized markets where money is essential. This paper takes a further step towards this integration by introducing labor, capital and neoclassical ̄rms. The resulting framework nests the search-theoretic monetary m...