Asset dynamics, liquidity, and inequality in decentralized markets

Maurizio Iacopetta () and Raoul Minetti
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Maurizio Iacopetta: OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po

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Abstract: The Kiyotakiand Wright model has exerted a considerable influence on the monetary search literature. We argue that the model also delivers important insights into a broader range of macroeconomic and development issues. The analysis studies how market frictions and the liquidity of assets affect the distribution of income. Experiments illustrate how the economy adjusts to shocks to asset returns and to the matching technology. They also deal with long-run transition. An experiment interprets the reversal of fortune hypothesis as a situation in which an economy with a low-return asset takes over a similar economy with a high-return asset.

Keywords: Decentralized markets; Asset dynamics (search for similar items in EconPapers)
Date: 2019-01
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03403574v1
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Published in Economic Inquiry, 2019, 57 (1), pp.537 - 551. ⟨10.1111/ecin.12721⟩

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Journal Article: ASSET DYNAMICS, LIQUIDITY, AND INEQUALITY IN DECENTRALIZED MARKETS (2019)
Working Paper: Asset dynamics, liquidity, and inequality in decentralized markets (2019)
Working Paper: Asset Dynamics, Liquidity, and Inequality in Decentralized Markets (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03403574

DOI: 10.1111/ecin.12721

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