Indeterminacy of Buying and Selling Price Spread in Monetary Equilibrium without Transactions Costs
In this paper we report an existence result in a general monetary equilibrium model with buying and selling price spread but without transactions costs. Under the assumption that an initial endowment allocation is not Pareto optimal it is proved that an equilibrium with a positive value of money exists if traders take buying and selling prices of commodities as given even if transactions costs are not explicitly required in the buying and selling activities of traders in commodity markets. This result points to an indeterminacy problem arising from existing general equilibrium models with transaction technologies.
|Date of creation:||Feb 2004|
|Date of revision:|
|Note:||February 25, 2004|
|Contact details of provider:|| Phone: +81-42-580-8000|
Web page: http://www.econ.hit-u.ac.jp/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:hit:econdp:2003-15. 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: (Digital Resources Section, Hitotsubashi University Library)
If references are entirely missing, you can add them using this form.