The case for a financial approach to money demand

• 成果类型: Article
• 署名作者: Ragot, Xavier
• 署名单位: Centre National de la Recherche Scientifique (CNRS); Paris School of Economics
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2013.09.005
• 发表日期: 2014
• 页码: 94-107
• 关键词: Money demand; Money Distribution; heterogenous agents

摘要

The distribution of money across households is much more similar to the distribution of financial assets than to that of consumption expenditures. This is a puzzle for theories which directly link money demand to consumption. This paper shows that the joint distribution of money and financial assets can be explained in a heterogeneous-agent model where both a cash-in-advance constraint and financial adjustment costs, as in the Baumol-Tobin literature, are introduced. Studying each friction in turn, one finds that the financial friction explains more than 78% of total money demand. (C) 2013 Elsevier B.V. All rights reserved.