This article develops a search-theoretic model of financial intermediation to study the efficiency condition of the banking sector. Competitive financial intermediation is determined by the search decisions of both households (to find adequate financial products) and banks (to attract depositors...

In view of the recent proposals on banking reform in the wake of the recent global economic crisis, this paper identifies some efficiency gains associated with narrow banking using an approach based on search theory. It is herein shown that the optimal allocation of resources can be...

This paper proposes a new explanation of the job quality issue in search and matching models, which is not based on market externalities but on strategic interactions within firms through the intrafirm bargaining process. We develop a matching and intrafirm bargaining model in which large firms...