On Complicated Dynamics in Simple Monetary Models

B-Tier
Journal: Journal of Money, Credit, and Banking
Year: 2019
Volume: 51
Issue: 6
Pages: 1433-1453

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We provide a complete characterization of stationary and nonstationary deterministic equilibria in search models of liquidity with indivisible assets. Two formulations are considered: the usual one with random search and bargaining; and a less common but arguably better one with directed search and posting. Also, we consider general meeting technologies. This is interesting because some results are easy with the particular technologies in previous studies but not in general. As is known, these models have equilibria where endogenous variables change over time as self‐fulfilling prophecies. More surprisingly, we prove there are no equilibria where they cycle in the long run.

Technical Details

RePEc Handle
repec:wly:jmoncb:v:51:y:2019:i:6:p:1433-1453
Journal Field
Macro
Author Count
2
Added to Database
2026-01-29