This work introduces a rigorous set-theoretic foundation of bilateral matching mechanisms and studies their properties in a systematic manner. By providing a unified framework to study bilateral matching mechanisms, we formalize how different spatial/informational constraints can be implemented...

We present a new proof of the interiority of the policy function based on the Inada conditions. It is based on supporting properties of concave functions.

In this study we offer a new approach to proving the differentiability of the value function, which complements and extends the literature on dynamic programming. This result is then applied to the analysis of equilibrium in the recent class of monetary economies developed in [13]. For this type...

I illustrate a search theoretic environment that allows endogenous determination of number of trade facilitators and markup charged on mediated sales. Developed around Kiyotaki and Wright's (1989) exchange economy, the study relaxes the assumptions of exogenous prices and distribution of agents...

Using a search-theoretic model where education's productive role is endogenous, we study the theoretical ramifications of separating human capital accumulation from educational investment decisions.

We study the endogenous determination of the trading mechanism in a search economy with a continuum of homogenous sellers and heterogeneous buyers.

We develop a general procedure to construct pairwise meeting processes characterized by two features. First, in each period the process maximizes the number of matches in the population. Second, over time agents meet everybody else exactly once. We call this type of meetings "absolute...

One of the main challenges for monetary economics is to explain the use of assets that are dominated in rate-of-return as media of exchange. In this paper, we use experimental methods to study how a fiat money might come to be used in transactions when an identically marketable, dividend-bearing...

An inter-governmental body is encouraging the replacement of currency with the objective of discouraging illegal economic activities. This policy is analyzed in a search-theoretic monetary economy with government enforcement. Individuals choose a legal or illegal production and settle trades via...

We develop the theoretical underpinnings of pairwise random matching mechanisms. We formalize the mechanics of matching, and study the links between properties of the different mechanisms and trade frictions. A particular emphasis is placed on providing exact mappings between matching...