There is a presumption that fixed and flexible (floating or market-determined) exchange-rate systems are equivalent if prices are flexible. We show that the presumption does not hold in two matching models of money. In both models, (i) currencies are the only assets and all trade is spot trade;...

The role of distinct currencies is studied using a random-matching model with randomized trades. The equilibrium concept is the pairwise core in meetings. We show that there exist equilibria in which home and foreign currency play distinct roles and in which the quantities of trade and output...

Chapter 1: Previous work on the denomination structure of currency treats as exogenous the distribution of transactions and the denominations held by people. Here, by way of a matching model, both are endogenous. In the model, trades in pairwise meetings alternate in time with the opportunity to...

This dissertation consists of three chapters.Chapter 1 presents an axiomatization of expected utility from the frequentist perspective. It starts with a preference relation on the set of infinite sequences with limit relative frequencies. We consider three axioms parallel to the ones for the...

Chapter 1 considers a stochastic overlapping generations model in which, at each date, a distributional shock divides the constant total endowment between a young and an old agents. Commitment cannot be externally enforced. More precisely, at each date, the young and old agents simultaneously...

This thesis applies mechanism design to explore the roles of outside and inside money in achieving optimal allocations. Two chapters use settings that are related to random-matching models. The third uses an overlapping generations setting. In all three, a critical role is played by assumptions...

I study the effects of lump-sum money creation against the background of the random-matching model of Trejos-Wright (1995) and Shi (1995). That model is interesting for the study of money creation because, alongside with the usual harmful internal margin effects, money creation has beneficial...

This thesis contains three essays on the formation of social networks. The first essay focuses on citation networks while the second one proposes a general model of network formation. The third essay is an empirical investigation of a person's kinship network.Chapter 1: Citations and the...