Equilibrium using credit or money with indivisible goods

A-Tier
Journal: Journal of Economic Theory
Year: 2016
Volume: 166
Issue: C
Pages: 152-163

Authors (4)

Han, Han (not in RePEc) Julien, Benoît (UNSW Sydney) Petursdottir, Asgerdur (not in RePEc) Wang, Liang (University of Hawaii-Manoa)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

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

Abstract

This note studies the trade of indivisible goods using credit or money in a frictional market. We show how indivisibility matters for monetary equilibrium under different assumptions about price determination. Bargaining generates a price and allocation that are independent of the nominal interest or inflation rate over some range. This is not the case with price posting and directed search. In either case, we provide conditions (the nominal rate cannot be too high) under which stationary monetary equilibrium exists, and we show it is unique or generically unique.

Technical Details

RePEc Handle
repec:eee:jetheo:v:166:y:2016:i:c:p:152-163
Journal Field
Theory
Author Count
4
Added to Database
2026-01-25