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Payments Systems with Random Matching and Private Information Author info | Abstract | Publisher info | Download info | Related research | Statistics Williamson, Stephen D
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A model of dynamic risk-sharing is constructed where agents meet pairwise and at random, and there is private information about endowments. Risk sharing is accomplished through dynamic contracts involving credit transactions and through monetary exchange. A Friedman rule is optimal, and solutions are computed. The welfare costs of inflation and the effects of inflation on the distribution of consumption and wealth are small for an economy calibrated to U.S. data. However, these effects are large when the credit system is relatively unsophisticated.
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Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking .
Volume (Year): 30 (1998)
Issue (Month): 3 (August)
Pages: 551-69
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Handle: RePEc:mcb:jmoncb:v:30:y:1998:i:3:p:551-69Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Lacker, Jeffrey M. & Schreft, Stacey L., 1996.
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"Search, Bargaining, Money, and Prices ,"
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Aiyagari, S.R. & Williamson, S.D., 1997.
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Aiyagari, S. Rao & Williamson, Stephen D., 2000.
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S. Rao Aiyagari & Stephen D. Williamson, 1998.
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Other versions: Aiyagari, S. Rao & Williamson, Stephen, 1997.
"Money, Credit, and Allocation Under Complete Dynamic Contracts and Incomplete Markets ,"
Working Papers
97-20, University of Iowa, Department of Economics.
Other versions:
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
S. Rao Aiyagari & Stephen D. Williamson, 1999.
"Credit in a Random Matching Model with Private Information ,"
Review of Economic Dynamics ,
Elsevier for the Society for Economic Dynamics, vol. 2(1), pages 36-64, January.
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Other versions: Ed Nosal & Guillaume Rocheteau, 2006.
"The economics of payments ,"
Policy Discussion Papers ,
Federal Reserve Bank of Cleveland, issue Feb.
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Stephen Williamson, 2000.
"The Research Agenda: Payment Systems and Private Money ,"
EconomicDynamics Newsletter ,
Review of Economic Dynamics, vol. 2(1), November.
[Downloadable!]
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