EconPapers    
Economics at your fingertips  
 

The Case for a Financial Approach to Money Demand

Xavier Ragot

No 474, 2009 Meeting Papers from Society for Economic Dynamics

Abstract: The distribution of money across households is much more similar to the distribution of financial assets than to that of consumption levels. This is a puzzle for theories which directly link money demand to consumption, such as cash-in-advance (CIA), money-in-the-utility function (MIUF) or shopping-time models. This paper shows that the joint distribution of money and financial assets can be explained by an incomplete-market model in which frictions are introduced into financial markets. Money demand is modeled as a portfolio choice with a fixed transaction cost in financial markets.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2009/paper_474.pdf (application/pdf)

Related works:
Journal Article: The case for a financial approach to money demand (2014) Downloads
Working Paper: The case for a financial approach to money demand (2014) Downloads
Working Paper: The case for a financial approach to money demand (2014) Downloads
Working Paper: The Case for a Financial Approach to Money Demand (2010) Downloads
Working Paper: The case for a financial approach to money demand (2008) Downloads
Working Paper: The case for a financial approach to money demand (2008) 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:red:sed009:474

Access Statistics for this paper

More papers in 2009 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2025-03-23
Handle: RePEc:red:sed009:474