EconPapers    
Economics at your fingertips  
 

A Tractable Model of Monetary Exchange with Ex-post Heterogeneity

Guillaume Rocheteau (), Pierre-Olivier Weill () and Tsz-Nga Wong ()

No 21179, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We construct a continuous-time, pure currency economy with the following three key features. First, our modelled economy incorporates idiosyncratic uncertainty—households receive infrequent and random opportunities of lumpy consumption—and displays an endogenous, non-degenerate distribution of money holdings. Second, the model is tractable: properties of equilibria can be obtained analytically, and equilibria can be solved in closed form in a variety of cases. Third, it admits as a special, limiting case the quasi-linear economy of Lagos and Wright (2005) and Rocheteau and Wright (2005). We use our modeled economy to obtain new insights into the effects of anticipated inflation on individual spending behavior, the social benefits and output effects of inflationary transfer schemes, and transitional dynamics following unanticipated monetary shocks.

JEL-codes: E0 E41 E52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac and nep-mon
Date: 2015-05
Note: EFG ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12) Track citations by RSS feed

Downloads: (external link)
http://www.nber.org/papers/w21179.pdf (application/pdf)

Related works:
Journal Article: A tractable model of monetary exchange with ex-post heterogeneity (2018) Downloads
Working Paper: A Tractable Model of Monetary Exchange with Ex-Post Heterogeneity (2017) 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:nbr:nberwo:21179

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w21179

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-12-19
Handle: RePEc:nbr:nberwo:21179