On the Distribution of Money Holdings in a Random‐Matching Model*
Author:
- Aleksander BerentsenABAleksander Berentsen
- 6 August 2002
- journal article
- Published by Wiley in International Economic Review
- Vol. 43 (3) , 945-954
Abstract
This article studies stationary and nonstationary distributions of money holdings in a random‐matching model. The first part characterizes the stationary distributions of money holdings and derives the optimum quantity of money. The second part considers nonstationary distributions of the optimum quantity of money to show that if the production costs are not too large, any distribution of the optimum quantity of money converges asymptotically to the uniform distribution.Keywords
All Related Versions
This publication has 16 references indexed in Scilit:
- Money Inventories in Search EquilibriumJournal of Money, Credit and Banking, 2000
- La quantité optimale de monnaie dans un modèle avec appariements aléatoiresAnnales D'economie Et de Statistique, 2000
- Individual and Aggregate Real Balances in a Random‐Matching ModelInternational Economic Review, 1999
- Money and Price DispersionInternational Economic Review, 1999
- A Matching Model with Bounded Holdings of Indivisible MoneyInternational Economic Review, 1999
- Search, inflation and capital accumulationJournal of Monetary Economics, 1999
- A Rudimentary Random-Matching Model with Divisible Money and PricesJournal of Economic Theory, 1998
- Money and Prices: A Model of Search and BargainingJournal of Economic Theory, 1995
- Search, Bargaining, Money, and PricesJournal of Political Economy, 1995
- A contribution to the pure theory of moneyJournal of Economic Theory, 1991