Department of Economics
The Pennsylvania State University
612 Kern Graduate Building
University Park, PA 16802-3306
Information about this author at RePEc
NBER Working Papers and Publications
|August 2007||Coalition-Proof Trade and the Friedman Rule in the Lagos-Wright Model|
with Tai-wei Hu, John Kennan: w13310
The Lagos-Wright model -- a monetary model in which pairwise meetings alternate in time with a centralized meeting -- has been extensively analyzed, but always using particular trading protocols. Here, trading protocols are replaced by two alternative notions of implementability: one that allows only individual defections and one that also allows cooperative defections in meetings. It is shown that the first-best allocation is implementable under the stricter notion with- out taxation if people are sufficiently patient. And, if people are free to skip the centralized meeting, then lump-sum taxation used to pay interest on money does not enlarge the set of implementable allocations.
Published: Tai-wei Hu & John Kennan & Neil Wallace, 2009. "Coalition-Proof Trade and the Friedman Rule in the Lagos-Wright Model," Journal of Political Economy, University of Chicago Press, vol. 117(1), pages 116-137, 02. citation courtesy of
|November 1999||Optimal Monetary Impulse-Response Functions in a Matching Model|
with Brett Katzman, John Kennan: w7425
The effects on ex ante optima of a lag in seeing monetary realizations are studied using a matching model of money. The main new ingredient in the model is meetings in which producers have more information than consumers. A consequence is that increases in the amount of money that occur with small enough probability can have negative impact effects on output, because it is optimal to shut down trade in such low probability meetings rather than have lower output when high probability realizations occur. The information lag also produces prices that do not respond much to current monetary realizations.
Published: “Output and Price Level Effects of Monetary Uncertainty in a Matching Model,” (with Brett Katzman and Neil Wallace), Journal of Economic Theory, 108(2), February 2003, 217-255.
|1972||A Study of Discretionary and Nondiscretionary Monetary and Fiscal Policies in the Context of Stochastic Macroeconometric Models|
with Yoel Haitovsky
in Economic Research: Retrospect and Prospect, Volume 1, The Business Cycle Today, Victor Zarnowitz, editor