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Income distribution, efficiency and rationing

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  • YIlmaz, Ensar

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.

Suggested Citation

  • YIlmaz, Ensar, 2011. "Income distribution, efficiency and rationing," Economic Modelling, Elsevier, vol. 28(3), pages 1247-1255, May.
    • Handle: RePEc:eee:ecmode:v:28:y:2011:i:3:p:1247-1255
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