A monetary theory with non-degenerate distributions

• 成果类型: Article
• 署名作者: Menzio, Guido; Shi, Shouyong; Sun, Hongfei
• 署名单位: University of Pennsylvania; National Bureau of Economic Research; University of Toronto; Queens University - Canada
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2013.07.020
• 发表日期: 2013
• 页码: 2266-2312
• 关键词: money; distribution; search; Lattice-theoretic

摘要

We construct and analyze a tractable search model of money with a non-degenerate distribution of money holdings. Analytical tractability comes from modeling decentralized exchange as directed search, which makes the monetary steady state block recursive. By adapting lattice-theoretic techniques, we characterize individuals' policy and value functions, and show that these functions satisfy the standard conditions of optimization. We prove that a unique monetary steady state exists and provide conditions under which the steady-state distribution of buyers over money balances is non-degenerate. Moreover, we analyze the properties of this distribution. (C) 2013 Elsevier Inc. All rights reserved.