Showing 1 - 10 of 33
Durable assets are widely used as collateral to secure the repayment of debt. This paper presents a monetary search model where durable assets can serve as a guarantee to repay consumption loans. In our economy, consumers can obtain loans from banks using their durable capital assets as...
Persistent link: https://www.econbiz.de/10011082109
This paper presents a microfounded model of money where durable assets serve as a guarantee to repay consumption loans. We study a steady state equilibrium where money and credit coexist. In such an equilibrium, a larger investment in durable capital relaxes the borrowing constraint faced by...
Persistent link: https://www.econbiz.de/10005058518
Persistent link: https://www.econbiz.de/10010533874
This paper studies economy-wide fluctuations that occur endogenously in the presence of monetary and real assets. Using a standard monetary search model, we consider an economy in which agents can increase consumption, over and above what their liquid monetary asset holdings would allow,...
Persistent link: https://www.econbiz.de/10009318606
We develop a theory of the interaction between the entry of lenders and the real sector. The high liquidation skills of incumbent lenders render them too tough in terminating high-risk/return projects. Being "foreign" to the market, newcomers have lower ability to liquidate than incumbents. This...
Persistent link: https://www.econbiz.de/10005530512
We present a model where a society elects a parliament by voting for candidates belonging to two parties. The electoral rule determines the seats distribution between the two parties. We analyze two electoral rules, multidistrict majority and single-district proportional. In this framework, the...
Persistent link: https://www.econbiz.de/10005417143
This paper presents a model where societies whose population expands, experience advances in specialization at the cost of diluted monitoring, which limits enforcement and hinders trade possibilities. Cash and private circulating instruments can replace monitoring. Advances in specialization may...
Persistent link: https://www.econbiz.de/10011183223
This paper addresses the "rate of return" puzzle of monetary theory. Similarly to the legal restrictions theory of the demand for money, we assume that Government bonds are subject to a minimum purchase requirement. Differently from this theory, however, we assume that intermediaries, when...
Persistent link: https://www.econbiz.de/10010734457
Persistent link: https://www.econbiz.de/10010839751
We present a model where a society elects candidates belonging to two parties to a national parliament. The electoral rule determines the seats distribution between the two parties. The policy outcome is a function of the number of seats the two parties win in the election. We analyze two...
Persistent link: https://www.econbiz.de/10010848207