A note on continuous time models with general cash-in-advance constraints

Kenji Miyazaki ()
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Kenji Miyazaki: Hosei University

Economics Bulletin, 2010, vol. 30, issue 4, 2856-2863

Abstract: This note completely characterizes continuous time models with general cash-in-advance constraints in that money is demanded for purchasing not only consumption goods but also for making all or some investments. Examining the three-dimensional dynamics of an exogenous growth model with general cash-in-advance constraints is unique. Comparative static analysis shows that increased inflation or a strengthened cash-in-advance constraint lowers the level of the capital stock in the long run. We also show that the steady state is locally stable.

Keywords: endogenous time preference; superneutrality; transition path; cash-in-advance; complementarity (search for similar items in EconPapers)
JEL-codes: E5 O4 (search for similar items in EconPapers)
Date: 2010-10-31
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Citations: View citations in EconPapers (1)

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