Non-robustness of the Cash-in-Advance Equilibrium in the Trading-Post Model
The main justification for cash-in-advance (CIA) equilibria when there are multiple assets is a Shapley-Shubik trading-post model where the agents coordinate on a particular medium of exchange. Of course, there are other equilibria. We introduce a refinement and show that the CIA equilibrium does not satisfy our refinement while there exist equilibria that do.
|Date of creation:||Sep 2003|
|Date of revision:|
|Contact details of provider:|| Postal: 608 Kern Graduate Building, University Park, PA 16802-3306|
Web page: http://econ.la.psu.edu/info/working_papers.html
More information through EDIRC
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.:
- Hayashi, Fumio & Matsui, Akihiko, 1996.
"A Model of Fiat Money and Barter,"
Journal of Economic Theory,
Elsevier, vol. 68(1), pages 111-132, January.
- Howitt, P W, 1974. "Stability and the Quantity Theory," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 133-51, Jan.-Feb..
When requesting a correction, please mention this item's handle: RePEc:ecl:peneco:9-03-2. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.