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 …

In this short note, I examine the rationality of money-search equilibrium in a basic second-generation money search … model, which is a perfectly divisible goods and indivisible money model. I then show that only an inflationary economy can … alerts us against employing the second-generation model to analyze a deflationary economy and com-modity money …

(two-price equilibrium) exists in Green and Zhou's matching model with divisible money. The welfare effect of price …

We introduce banks in a model of money and capital with trading frictions. Banks offer demand deposit contracts and …