scholarly journals Money, Search and Costly Matchmaking

2014 ◽  
Author(s):  
Gabriele Camera
Keyword(s):  
Money Search

MONEY, SEARCH, AND BUSINESS CYCLES*

2011 ◽  
Vol 52 (3) ◽  
pp. 935-959 ◽  
Author(s):  
S. Borağan Aruoba
Keyword(s):  
Business Cycles ◽  
Money Search

ON THE ROLE OF TAX SUBSIDY SCHEME IN MONEY SEARCH MODELS

2007 ◽  
Vol 48 (2) ◽  
pp. 575-606 ◽  
Author(s):  
Kazuya Kamiya ◽  
Takashi Shimizu
Keyword(s):  
Search Models ◽  
Tax Subsidy ◽  
Subsidy Scheme ◽  
Money Search

Bitcoin

2015 ◽  
Vol 6 (2) ◽  
pp. 52-71 ◽  
Author(s):  
Tetsuya Saito
Keyword(s):  
Inflation Rate ◽  
Substitution Effect ◽  
Large Share ◽  
Public Authorities ◽  
The Public ◽  
Matching Process ◽  
Negative Effect ◽  
Money Search ◽  
The Stability ◽  
In The Beginning

This paper considers whether the stability of Bitcoin in the market as a method of payment using a dual currency money-search model. In the model, there is traditional money and Bitcoin. The two currencies are classified by the storage cost and the probability that sellers accept particular money for payments. Agents are randomly matched for transactions. To consider substitution effect between monies, we allow new entries every period. In the beginning of each period, new entrants come into the matching process with a unit of money of their choice. A certain number of sellers also come into the same process to maintain the population share of sellers at a constant level. With appropriately chosen parameters, the author finds that there can be stable and unstable equilibria of the share of bitcoiners. In this case, a stable equilibrium is a success (bitcoiners take a large share) while the other (unstable) is a failure (bitcoiners take a marginal share or vanish). However, if the inflation rate of traditional money decreases, the successful equilibrium disappears to start approaching the failure even if Bitcoin is currently widely accepted. Furthermore, welfare comparisons suggest that an increase in the share of bitcoiners has a negative effect; hence, the benefit from reductions in the transaction costs must compensate for the welfare erosion if Bitcoin is accepted as a new kind of payment system. If the author is to succeed, the Bitcoin community or the public authorities need to be prepared for protecting the system from several illicit activities.

scholarly journals MONEY, SEARCH, AND COSTLY MATCHMAKING

2000 ◽  
Vol 4 (3) ◽  
pp. 289-323 ◽  
Author(s):  
Gabriele Camera
Keyword(s):  
Multiple Equilibria ◽  
Increasing Returns ◽  
Random Matching ◽  
Matching Model ◽  
Efficient Mechanism ◽  
Monetary Regimes ◽  
Double Coincidence ◽  
Money Search ◽  
The Cost ◽  
Trade Partners

I examine the robustness of monetary equilibria in a random-matching model, where a more efficient mechanism for trade is available. Agents choose between two trading sectors: the search and the intermediated sector. In the former, trade partners arrive randomly and there is a trading externality. In the latter, a costly matching technology provides deterministic double-coincidence matches. Multiple equilibria exist with the extent of costly matching endogenously determined. Money and “mediated” trade may coexist. This depends on the size of the probability of a trade, relative to the cost of deterministic matching. This outcome is inferior for an increasing-returns externality. Under certain conditions, regimes with only costly matching are welfare superior to monetary regimes with random matching.

scholarly journals Essays on applied macroeconomics and monetary policy

2019 ◽  
Author(s):  
◽  
Saroj Dhital
Keyword(s):  
Monetary Policy ◽  
Global Scale ◽  
Reduced Form ◽  
Regional Convergence ◽  
Search Model ◽  
Economic Activities ◽  
Night Time ◽  
Policy Regime ◽  
Applied Macroeconomics ◽  
Money Search

The dissertation presents three essays in applied macroeconomics and monetary theory. First essay explores the existence of global financial cycles and examines the relationship between financial and macroeconomic sectors at a global scale. I find that there exist significant cycles in financial variables and the contribution of the financial shocks on global macroeconomic sector is significant and varying over time. Second essay examines the role of decentralization on regional convergence using night-time satellite lights data as proxy for regional economic activities. I find that the decentralization hinders regional convergence in the sample of developing countries. Third essay analyzes active and passive fiscal and monetary policy regime in the presence of long and short-maturity government debt. I utilize the advances made in money search model to analyze the policy regimes. I find that while there are some similarities between the regime, there are also significant differences. I also find that the results using money-search model can be different than using a reduced form models.

Bitcoin

2018 ◽  
pp. 1-23
Author(s):  
Tetsuya Saito
Keyword(s):  
Transaction Costs ◽  
Substitution Effect ◽  
The Other ◽  
Public Authorities ◽  
The Public ◽  
Matching Process ◽  
Negative Effect ◽  
Money Search ◽  
The Stability ◽  
In The Beginning

This paper considers whether the stability of Bitcoin in the market as a method of payment using a dual currency money-search model. In the model, there is traditional money and Bitcoin. The two currencies are classified by the storage cost and the probability that sellers accept particular money for payments. Agents are randomly matched for transactions. To consider substitution effect between monies, we allow new entries every period. In the beginning of each period, new entrants come into the matching process with a unit of money of their choice. A certain number of sellers also come into the same process to maintain the population share of sellers at a constant level. With appropriately chosen parameters, the author finds that there can be stable and unstable equilibria of the share of bitcoiners. In this case, a stable equilibrium is a success (bitcoiners take a large share) while the other (unstable) is a failure (bitcoiners take a marginal share or vanish). However, if the inflation rate of traditional money decreases, the successful equilibrium disappears to start approaching the failure even if Bitcoin is currently widely accepted. Furthermore, welfare comparisons suggest that an increase in the share of bitcoiners has a negative effect; hence, the benefit from reductions in the transaction costs must compensate for the welfare erosion if Bitcoin is accepted as a new kind of payment system. If the author is to succeed, the Bitcoin community or the public authorities need to be prepared for protecting the system from several illicit activities.

Sign in / Sign up

Export Citation Format

Share Document