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On the coexistence of money and higher-return assets and its social role

Hu, Tai-Wei; Rocheteau, Guillaume - In: Journal of economic theory 148 (2013) 6, pp. 2520-2560

Persistent link: https://www.econbiz.de/10010257921

An analytical model of search and bargaining with divisible money

Kamiya, Kazuya; Kubota, So - In: Theoretical economics : TE ; an open access journal in … 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 … tractable equilibrium, called a pay‐all equilibrium , and prove its existence. Each buyer pays all the money holding as a corner … power parameter affects the distribution of the money holdings and possibly induces economic inefficiency. We propose a …

Persistent link: https://www.econbiz.de/10015415280

Information Acquisition and Price Discrimination in Dynamic, Decentralized Markets

Choi, Michael; Rocheteau, Guillaume - 2022

We formalize a decentralized market where consumers with privately-known preferences meet bilaterally with firms. The latter acquire information to raise their degree of price discrimination from second to first. In a dynamic setting where outside options are endogenous, information choices are...

Persistent link: https://www.econbiz.de/10014077920

Foundations of Market Power in Monetary Economies

Choi, Michael; Rocheteau, Guillaume - 2021

We study the foundations of firms' market power in a continuous-time model where agents are price-makers who interact explicitly with each other. Market power arises from the existence of rents, the size of which depends on consumers' outside options, and firms' ability to appropriate these...

Persistent link: https://www.econbiz.de/10013238448

Liquidity and Asset Market Dynamics

Rocheteau, Guillaume - 2010

We study economies with an essential role for liquid assets in transactions. The model can generate multiple stationary equilibria, across which asset prices, market participation, capitalization, output and welfare are positively related. It can also generate a variety of nonstationary...

Persistent link: https://www.econbiz.de/10013135202

Liquidity and the Threat of Fraudulent Assets

Li, Yiting - 2011

We study an over-the-counter (OTC) market with bilateral meetings and bargaining where the usefulness of assets, as means of payment or collateral, is limited by the threat of fraudulent practices. We assume that agents can produce fraudulent assets at a positive cost, which generates endogenous...

Persistent link: https://www.econbiz.de/10013119877

Financial Frictions, the Housing Market, and Unemployment

Branch, William - 2014

We develop a two-sector search-matching model of the labor market with imperfect mobility of workers, augmented to incorporate a housing market and a frictional goods market. Homeowners use home equity as collateral to finance idiosyncratic consumption opportunities. A financial innovation that...

Persistent link: https://www.econbiz.de/10013064308

Endogenously (non-)Ricardian beliefs

Branch, William A.; Gasteiger, Emanuel - 2019

This paper develops a theory of endogenously (non-)Ricardian beliefs. That is, whether Ricardian Equivalence holds in an equilibrium depends on endogenous private sector beliefs. The novelty here is a restricted perceptions viewpoint: in complex forecasting environments, agents forecast...

Persistent link: https://www.econbiz.de/10011988962

A Model of Retail Banking and the Deposits Channel of Monetary Policy

Choi, Michael; Rocheteau, Guillaume - 2021

We develop a dynamic, search-theoretic model of bank deposit and loan markets where relationships are bilateral, the demand for liquid assets is microfounded, and consumers are privately informed about their liquidity needs. As the policy rate rises, the deposit spread widens, and aggregate...

Persistent link: https://www.econbiz.de/10013216021

New Monetarism in Continuous Time : Methods and Applications

Choi, Michael - 2020

We develop a New Monetarist model in continuous time where agents trade continuously in competitive markets and infrequently in pairwise meetings. Agents can produce and consume both in flows over time intervals and in discrete quantities at points in time. We detail the methodology to solve...

Persistent link: https://www.econbiz.de/10012848247