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A spatial separation model of a credit economy with optimistic and pessimistic quantity expectations

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Author Info
Hoog S. van der () (Universiteit van Amsterdam)

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Abstract

The paper studies dynamic trading behavior in a circular exchange economy. Transactions take place sequentially at non-equilibrium prices, there is quantity rationing, and credit is the only means of exchange. Agents can have optimistic or pessimistic expectations about quantity constraints which represent their beliefs about future trading opportunities and they take into account that they are being rationed.

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File URL: http://www1.fee.uva.nl/cendef/publications/papers/Paper-Credit-Model.zip.ps
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Publisher Info
Paper provided by Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance in its series CeNDEF Working Papers with number 05-16.

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Date of creation: 2005
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Handle: RePEc:ams:ndfwpp:05-16

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Postal: Dept. of Economics and Econometrics, Universiteit van Amsterdam, Roetersstraat 11, NL - 1018 WB Amsterdam, The Netherlands
Phone: + 31 20 525 52 58
Fax: + 31 20 525 52 83
Web page: http://www.fee.uva.nl/cendef/
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