학술저널
Under What Conditions Do the Poor Hold Cash in Pairwise-Trade Models?
- 한국계량경제학회
- JOURNAL OF ECONOMIC THEORY AND ECONOMETRICS
- Vol.23 No.3
-
2012.09237 - 252 (16 pages)
- 50
Most existing pairwise-trade models of money predict that the poor may not hold any money in the presence of interest-bearing liquid assets. We resolve this seemingly implausible prediction by incorporating cash and interestbearing checking account into a standard search-theoretic model. If the transaction cost of a debit card is neither too small nor too large, there is a coexistence equilibrium in which the poor hold cash for their small transactions, whereas the rich hold interest-bearing deposits and use a debit card for their large transactions.
Abstract
1. INTRODUCTION
2. MODEL
3. STEADY STATE
4. PORTFOLIO CHOICES OF HETEROGENEOUS AGENTS
5. NUMERICAL EXAMPLE
6. CONCLUDING REMARKS
APPENDIX: PROOFS
REFERENCES
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