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Barilla, César; Gonçalves, Duarte - In: Theoretical Economics 19 (2024) 1, pp. 365-405

We study a model in which two players with opposing interests try to alter a status quo through instability …-generating actions. We show that instability can be used to secure longer-term durable changes, even if it is costly to generate and does … not generate short-term gains. In equilibrium, instability generated by a player decreases when the status quo favors them …

Persistent link: https://www.econbiz.de/10014536977

An analytical model of search and bargaining with divisible money

Kamiya, Kazuya; Kubota, So - In: Theoretical Economics 20 (2025) 2, pp. 713-761

We propose a standard search and bargaining model with divisible money, in which only the random matching market opens and the generalized Nash bargaining settles each trade. Assuming fixed production costs, we analytically characterize a tractable equilibrium, called a pay-all equilibrium , and...

Persistent link: https://www.econbiz.de/10015419698

Full substitutability

Hatfield, John William; Kominers, Scott Duke; Nichifor, … - In: Theoretical Economics 14 (2019) 4, pp. 1535-1590

Various forms of substitutability are essential for establishing the existence of equilibria and other useful properties in diverse settings such as matching, auctions, and exchange economies with indivisible goods. We extend earlier models' definitions of substitutability to settings in which...

Persistent link: https://www.econbiz.de/10012215327

Digital currency and privacy

Kang, Kee-Youn - In: Theoretical Economics 19 (2024) 1, pp. 131-167

We develop a monetary model in which a private company issues digital currency and uses payment data to estimate consumers' preferences. Sellers purchase preference information to produce goods that better match consumers' preferences. A monopoly arises in the digital currency industry, and...

Persistent link: https://www.econbiz.de/10014536893

A tractable model of monetary exchange with ex-post heterogeneity

Rocheteau, Guillaume; Weill, Pierre-Olivier; Wong, Russell - In: Theoretical Economics 13 (2018) 3, pp. 1369-1423

We construct a continuous-time, New-Monetarist economy that displays an endogenous, non-degenerate distribution of money holdings. Properties of equilibria are obtained analytically and equilibria are solved in closed form in a variety of cases. Lump-sum transfers financed with money creation...

Persistent link: https://www.econbiz.de/10012010059

Statistical sunspots

Branch, William A.; McGough, Bruce; Zhu, Mei - In: Theoretical Economics 17 (2022) 1, pp. 291-329

This paper shows that belief-driven economic fluctuations are a general feature of many determinate macroeconomic models. In environments with hidden state variables, forecast-model misspecification can break the link between indeterminacy and sunspots by establishing the existence of...

Persistent link: https://www.econbiz.de/10013189038

Equilibrium concepts in the large-household model

Zhu, Tao - In: Theoretical Economics 3 (2008) 2, pp. 257-281

This paper formulates equilibrium concepts in the large (non atomic) household model under the team notion, characterizes a class of equilibrium allocations, explores whether an equilibrium allocation in the large-household model is a limit of equilibrium allocations in the finite-household...

Persistent link: https://www.econbiz.de/10011599403

Equilibrium concepts in the large-household model

Zhu, Tao - In: Theoretical Economics 3 (2008) 2

Persistent link: https://www.econbiz.de/10005812757

In the shadow of shadow banking: A liquidity perspective

Liu, Zehao; He, Ping; Xie, Chengbo - In: Theoretical Economics 20 (2025) 1, pp. 131-168

Liquidity requirements for commercial banks improve risk-sharing for depositors. Nevertheless, shadow banks, issuing securities with lower liquidity, operate outside such regulatory constraints. In an economy featuring shadow banks with a constant level of liquidity for shadow bank securities,...

Persistent link: https://www.econbiz.de/10015419702

Markov distributional equilibrium dynamics in games with complementarities and no aggregate risk

Balbus, Łukasz; Dziewulski, Paweł; Reffett, Kevin L.; … - In: Theoretical Economics 17 (2022) 2, pp. 725-762

We present a new approach to studying equilibrium dynamics in a class of stochastic games with a continuum of players with private types and strategic complementarities. We introduce a suitable equilibrium concept, called Markov Stationary Nash Distributional Equilibrium (MSNDE), prove its...

Persistent link: https://www.econbiz.de/10014536895