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Income distribution, efficiency and rationing

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  • YIlmaz, Ensar
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    Abstract

    This paper studies the impacts of income distribution on the efficiency of trade mechanism and rationing of agents who are priced out of trade in a dynamic search model with two-sided asymmetric information. Buyers and sellers have asymmetric information about valuations and incomes respectively. In such a frictional environment, the effects of several variants of changes in income distribution on efficiency of trading mechanism and the population of rationed buyers and sellers are elaborated.

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    File URL: http://www.sciencedirect.com/science/article/B6VB1-524F695-1/2/9014efac8ec41bb1ba6341a7c5b5e58c
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    Bibliographic Info

    Article provided by Elsevier in its journal Economic Modelling.

    Volume (Year): 28 (2011)
    Issue (Month): 3 (May)
    Pages: 1247-1255

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    Handle: RePEc:eee:ecmode:v:28:y:2011:i:3:p:1247-1255

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    Web page: http://www.elsevier.com/locate/inca/30411

    Related research

    Keywords: Income distribution Efficiency Rationing Search;

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