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Endogenous Matching and Money with Random Consumption Preferences

Author

Listed:
  • Hogan Thomas L.

    (Baker Institute for Public Policy, Rice University, Houston, TX, USA)

  • Luther William J.

    (Economics, Florida Atlantic University, Boca Raton, FL, USA)

Abstract

Current money matching models employ either random matching or endogenous matching processes, both of which oversimplify the problem. We maintain that, although most economic interactions are intentional, some randomness remains. We offer an endogenous matching model of money with random consumption preferences. Our model preserves the intentionality of economic interactions while leaving scope for chance. We identify the conditions for potential monetary and nonmonetary equilibria and compare them to those of other endogenous matching and random matching models.

Suggested Citation

  • Hogan Thomas L. & Luther William J., 2019. "Endogenous Matching and Money with Random Consumption Preferences," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 19(2), pages 1-9, June.
    • Handle: RePEc:bpj:bejtec:v:19:y:2019:i:2:p:9:n:8
    DOI: 10.1515/bejte-2017-0170
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    References listed on IDEAS

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    1. Xavier Cuadras-Morató, 1997. "Can ice cream be money?: Perishable medium of exchange," Journal of Economics, Springer, vol. 66(2), pages 103-125, June.
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    4. William Luther, 2016. "Mises and the moderns on the inessentiality of money in equilibrium," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 29(1), pages 1-13, March.
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    Cited by:

    1. Hazlett, Peter K. & Luther, William J., 2020. "Is bitcoin money? And what that means," The Quarterly Review of Economics and Finance, Elsevier, vol. 77(C), pages 144-149.

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    More about this item

    Keywords

    money matching; random matching; endogenous matching; monetary equilibrium; monetary policy;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

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