Price level volatility: A simple model of money taxes and sunspots
成果类型：
Article; Proceedings Paper
署名作者：
Bhattacharya, J; Guzman, MG; Shell, K
署名单位：
Cornell University; State University of New York (SUNY) System; University at Buffalo, SUNY; Wellesley College
刊物名称：
JOURNAL OF ECONOMIC THEORY
ISSN/ISSBN：
0022-0531
DOI：
10.1006/jeth.1997.2362
发表日期：
1998
页码：
401-430
关键词：
摘要：
We investigate sunspot equilibria in a static, one-commodity model with taxes and transfers denominated in money units. Volatility in this economy is purely monetary, since the only uncertainty is about the price level. We construct simple, robust examples of sunspot equilibria that are not mere randomizations over certainty equilibria. We also identify the source of these SSEs: Equilibrium in the securities market is determined as if there were no restricted consumers and the unrestricted consumers face intrinsic uncertainty. Perfect securities markets eliminate allocation uncertainty, but they exacerbate price-level volatility. (C) 1998 Academic Press.