On the Distribution of Money Holdings in a Random-Matching Model

Aleksander Berentsen

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies stationary and nonstationary distributions of money holdings in a random-matching model. The first part characterizes the stationary distributions of money holdings and derives the optimum quantity of money. The second part considers nonstationary distributions of the optimum quantity of money to show that if the production costs are not too large, any distribution of the optimum quantity of money converges asymptotically to the uniform distribution.

Keywords: Optimum Quantity of Money; Distribution of Money Holdings; Convergence; Search Equilibrium (search for similar items in EconPapers)
JEL-codes: D51 E40 E52 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (22)

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Journal Article: On the Distribution of Money Holdings in a Random-Matching Model (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:37319

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