A comment on: 'Efficient propagation of shocks and the optimal return on money'

Pidong Huang ()

MPRA Paper from University Library of Munich, Germany

Abstract: Lotteries are introduced into Cavalcanti and Erosa (2008) [2], a version of Trejos and Wright (1995) [4] with aggregate shocks. Lotteries improve welfare and eliminate the two notable features of the optimum with deterministic trades: over-production and history-dependence. Moreover, the optimum can be supported by buyer take-it-or-leave-it offers.

Keywords: Random matching model of money; Aggregate shock; Optimal allocation; History-dependence; Lottery (search for similar items in EconPapers)
JEL-codes: E30 (search for similar items in EconPapers)
Date: 2012-01-04
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: A comment on: 'Efficient propagation of shocks and the optimal return on money' (2011)
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