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Real Indeterminacy of Stationary Equilibria in Matching Models with Media of Exchange

Author

Listed:
  • Kazuya Kamiya

    (Faculty of Economics, University of Tokyo)

  • Takashi Shimizu

    (Department of Economics, Kansai University)

Abstract

In this paper, it is shown that real indeterminacy of stationary equilibria generically arises in most matching models with perfectly divisible media of exchange. In other words, the real indeterminacy follows from the condition for stationarity of holdings of media of exchange. Moreover, we present a new technique to prove the existence of stationary equilibria; especially, it is applicable to the case that both money and goods are perfectly divisible.

Suggested Citation

  • Kazuya Kamiya & Takashi Shimizu, 2004. "Real Indeterminacy of Stationary Equilibria in Matching Models with Media of Exchange," CIRJE F-Series CIRJE-F-167, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2002cf167
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    References listed on IDEAS

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    7. Kazuya Kamiya & Noritsugu Morishita & Takashi Shimizu, 2005. "On the existence of single‐price equilibria in a matching model with divisible money and production cost," International Journal of Economic Theory, The International Society for Economic Theory, vol. 1(3), pages 219-231, September.
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    12. Edward J. Green & Ruilin Zhou, 2002. "Dynamic Monetary Equilibrium in a Random Matching Economy," Econometrica, Econometric Society, vol. 70(3), pages 929-969, May.
    13. Kazuya Kamiya & Noritsugu Morishita & Takashi Shimizu, 2004. "On the Existence of Single-Price Equilibria in a Matching Model with Divisible Money and Production Cost ("International Journal of Economic Theory" Volume 1, Issue 3, September 2005, Pages:," CARF F-Series CARF-F-008, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
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    1. Kazuya Kamiya & Takashi Shimizu, 2005. "On the Role of Tax-Subsidy Scheme in Money Search Models (Subsequently published in "International Economic Review" 48, 2007, 575-606. )," CARF F-Series CARF-F-025, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    2. Kazuya Kamiya & Noritsugu Morishita & Takashi Shimizu, 2005. "On the existence of single‐price equilibria in a matching model with divisible money and production cost," International Journal of Economic Theory, The International Society for Economic Theory, vol. 1(3), pages 219-231, September.
    3. Kazuya Kamiya & Takashi Shimizu, 2007. "On The Role Of Tax Subsidy Scheme In Money Search Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(2), pages 575-606, May.
    4. Kazuya Kamiya & Dolf Talman, 2003. "Random Matching Models and Money: The Global Structure and Approximation of the Set of Stationary Equilibria," CIRJE F-Series CIRJE-F-220, CIRJE, Faculty of Economics, University of Tokyo.
    5. Kamiya, K. & Talman, A.J.J., 2003. "Random Matching Models and Money : The Global Structure and Approximation of Stationary Equilibria," Discussion Paper 2003-70, Tilburg University, Center for Economic Research.
    6. Kazuya Kamiya & Noritsugu Morishita & Takashi Shimizu, 2004. "On the Existence of Single-Price Equilibria in a Matching Model with Divisible Money and Production Cost ("International Journal of Economic Theory" Volume 1, Issue 3, September 2005, Pages:," CARF F-Series CARF-F-008, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.

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