The Distribution of Money and Prices in an Equilibrium with Lotteries

Preprint
Publisher Website
Google Scholar
    • preprint
      • Published in RePEc
Abstract
We construct a tractable model of divisible money and equilibrium heterogeneity in money balances and prices. We do so by considering randomized monetary trades in a standard search-theoretic model of money where agents can hold multiple units of indivisible 'tokens'. By studying a simple trading pattern, we can generate monetary distributions that match those observed in numerically simulated economies with fully divisible money and price heterogeneity.
All Related Versions

This publication has 0 references indexed in Scilit: