Intensive vs Extensive Margin Tradeoffs in a Simple Monetary Search Model
We introduce ex-post heterogeneity into monetary search models with lotteries. Heterogeneity allows lotteries over goods to exist in equilibrium. These lotteries over goods create an intensive margin (expected production in a match) that is non-existent in all indivisible goods monetary search models. We then show there can be a tradeoff between the intensive margin and extensive margin (number of matches) when choosing the optimal monetary stock.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: 12, place du Panthéon, 75230 Paris Cedex 05|
Phone: (33) 1 44 41 89 61 (66)
Fax: (33) 1 40 51 81 30
Web page: http://ermes.u-paris2.fr/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:erm:papers:0509. 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.