EconPapers    
Economics at your fingertips  
 

A simple search model of money with heterogeneous agents and partial acceptability

Andrei Shevchenko and Randall Wright

No 207, Working Papers (Old Series) from Federal Reserve Bank of Cleveland

Abstract: Simple search models have equilibria where some agents accept money and others do not. We argue such equilibria should not be taken seriously - which is unfortunate if one wants a model with partial acceptability. We introduce heterogeneous agents and show partial acceptability arises naturally. There can be multiple equilibria with different degrees of acceptability. Given the type of heterogeneity we allow, the model is still simple: equilibria reduce to fixed points in [0,1]. We show that with other forms of heterogeneity, equilibria are generally fixed points in set space, and there exists no method to reduce this to a problem in R1.

Keywords: Money; theory (search for similar items in EconPapers)
Date: 2002
New Economics Papers: this item is included in nep-cba, nep-dge and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.26509/frbc-wp-200207 Persistent link
https://www.clevelandfed.org/-/media/project/cleve ... del-of-money-pdf.pdf Full text (application/pdf)

Related works:
Chapter: A simple search model of money with heterogeneous agents and partial acceptability (2006)
Journal Article: A simple search model of money with heterogeneous agents and partial acceptability (2004) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcwp:0207

Ordering information: This working paper can be ordered from

DOI: 10.26509/frbc-wp-200207

Access Statistics for this paper

More papers in Working Papers (Old Series) from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by 4D Library ().

 
Page updated 2025-03-30
Handle: RePEc:fip:fedcwp:0207