General equilibrium with nonconvexities and money

• 成果类型: Article
• 署名作者: Rocheteau, Guillaume; Rupert, Peter; Shell, Karl; Wright, Randall
• 署名单位: Cornell University; Federal Reserve System - USA; Federal Reserve Bank - Cleveland; University of California System; University of California Santa Barbara; University of Pennsylvania
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2006.07.011
• 发表日期: 2008
• 页码: 294-317
• 关键词: extrinsic uncertainty; general equilibrium; indivisible goods; lotteries; Lottery equilibrium; Monetary economics; money; nonconvexities; search; Sunspot equilibrium; sunspots

摘要

In a general-equilibrium economy with nonconvexities, there are sunspot equilibria with good welfare properties; sunspots can ameliorate the effects of the nonconvexities. For these economies, we show that agents act as if they have quasi-linear utility functions. We use this result to construct a new model of monetary exchange along the lines of Lagos and Wright. where trade occurs in both centralized and decentralized markets, but instead of quasi-linear preferences we assume general preferences but with indivisible labor. This suggests that modern monetary theory is more robust than one might have thought. It also constitutes progress on the classic problem of integrating monetary economics and general-equilibrium theory. (C) 2007 Elsevier Inc. All rights reserved.