A comment on: 'Efficient propagation of shocks and the optimal return on money'

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.

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Year of publication:	2011-09-01
Authors:	Huang, Pidong ; Igarashi, Yoske
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Random matching model of money \| Aggregate shock \| Optimal allocation \| History-dependence \| Lottery

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Notes:	Published in Journal of Economic Theory 1.147(2012): pp. 7-7
Classification:	C78 - Bargaining Theory; Matching Theory ; D61 - Allocative Efficiency; Cost-Benefit Analysis ; D82 - Asymmetric and Private Information ; E30 - Prices, Business Fluctuations, and Cycles. General ; E40 - Money and Interest Rates. General ; E50 - Monetary Policy, Central Banking and the Supply of Money and Credit. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011112794