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Income distribution, efficiency and rationing

  • YIlmaz, Ensar
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    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/pii/S0264-9993(11)00004-6
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    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
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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