In experiments subjects regularly trade off time and money at inconsistent rates, apparently becoming less sensitive to money when considering the purchase of a more-expensive item. In this paper I introduce a demand function that matches this behaviour, and derive the predictions for equilibrium market structure, and then finally discuss market evidence. The demand function is derived from a u...

TE’HE past few years have been marked by financial innovation and deregulation: the rapid growth of money market mutual funds (MMMFs), the nationwide introduction of NOW accounts (January 1, 1981), the introduction of tax-exempt, all-savers certificates (October 1, 1981) and, most recently, the introduction of the Garn-St Germain money market deposit accounts (December 14, 1982) and super-NOW a...

This paper examines the role of money in understanding the behavior of asset prices and whether and how monetary policy should react to asset prices such as stock prices and equity premiums. To do so, I introduce money via the form of transaction cost into a production economy with limited stock market participation where agents with lower inter-temporal elasticity of substitution (IES), called...

We analyze an ideal gas like models of a trading market. We propose a new fit for the money distribution in the fixed or uniform saving market. For the market with quenched random saving factors for its agents we show that the steady state income (m) distribution P (m) in the model has a power law tail with Pareto index ν exactly equal to unity, confirming the earlier numerical studies on this ...

Based on a comprehensive investigation on Chinese Stock Market and macroeconomic policies, analyzing samples of the SSE Composite Index and relevant monetary and fiscal policies during the period from January 2000 to June 2008, this paper uses GARCH-type models and EVIEWS5.1 software to study effects of changes in macroeconomic policy on conditional volatility of Chinese Stock Market and analyz...

In this paper, we analyze the effects of money on the market for durable goods both empirically and theoretically. Using monthly US data on personal expenditures on durable goods and the housing market, we estimate from a VAR the dynamic responses of the price and quantity of durable goods and housing to money supply shocks, assuming only that money is neutral in the long-run. We then estimate ...

The present research tested whether incidental exposure to money affects people's endorsement of social systems that legitimize social inequality. We found that subtle reminders of the concept of money, relative to nonmoney concepts, led participants to endorse more strongly the existing social system in the United States in general (Experiment 1) and free-market capitalism in particular (Exper...

After a period of euphoria the future of e-money looks much less promising today than even two years ago: No significant market volume, less innovation, hardly any non-bank activities and premature regulation by supervisory authorities. The focus of this analysis are two basic parameters of the current lack of success and the future chances of e-money: market issues (supply, demand, cost-benefi...

The present research tested whether incidental exposure to money affects people’s endorsement of social systems that legitimize social inequality. We found that subtle reminders of the concept of money, relative to nonmoney concepts, led participants to endorse more strongly the existing social system in the United States in general (Experiment 1) and free-market capitalism in particular (Exper...