scholarly journals A Monetary Search Model with Non-unitary Discounting

2019 ◽  
Author(s):  
Daiki Maeda
Keyword(s):  
Search Model ◽  
Monetary Search

scholarly journals Nonlinear Unemployment Effects of the Inflation Tax

2021 ◽  
Vol 2021 (040) ◽  
pp. 1-48
Author(s):  
Mohammed Ait Lahcen ◽  
◽  
Garth Baughman ◽  
Stanislav Rabinovich ◽  
Hugo van Buggenum ◽  
...  
Keyword(s):  
Welfare Cost ◽  
Search Model ◽  
Productivity Shocks ◽  
Aggregate Shocks ◽  
Welfare Cost Of Inflation ◽  
State Dependent ◽  
Long Run ◽  
Monetary Search ◽  
Cross Country ◽  
Unemployment Volatility

We argue that long-run inflation has nonlinear and state-dependent effects on unemployment, output, and welfare. Using panel data from the OECD, we document three correlations. First, there is a positive long-run relationship between anticipated inflation and unemployment. Second, there is also a positive correlation between anticipated inflation and unemployment volatility. Third, the long-run inflation-unemployment relationship is not only positive, but also stronger when unemployment is higher. We show that these correlations arise in a standard monetary search model with two shocks – productivity and monetary – and frictions in labor and goods markets. Inflation lowers the surplus from a worker-firm match, in turn making it sensitive to productivity shocks or to further increases in inflation. We calibrate the model to match the U.S. postwar labor market and monetary data, and show that it is consistent with observed cross-country correlations. The model implies that the welfare cost of inflation is nonlinear in the level of inflation and is amplified by the presence of aggregate shocks.

scholarly journals Currency Exchange in an Open-Economy Random Search Model

2016 ◽  
Vol 16 (1) ◽  
pp. 1-31
Author(s):  
Mariko Tanaka
Keyword(s):  
International Trade ◽  
Open Economy ◽  
Foreign Currency ◽  
Home Country ◽  
Random Search ◽  
Foreign Country ◽  
Search Model ◽  
Currency Exchange ◽  
Monetary Search ◽  
Globalized Economy

AbstractThis paper studies how endogenous currency exchange arises in a two-country, two-currency monetary search model. Although currency exchange is widely observed in the globalized economy, Zhou (1997) is one of the exceptional studies that adopted a search model to generate currency exchange endogenously. Moreover, in her model, currency exchange occurs only in the case where agents rarely consume foreign goods, which is contrary to the well-known fact that international trade increases the number of currency exchanges. We construct a monetary search model that has a feature that increased international trade increases the volume of currency exchange. We develop a two-country model in which each country has two types of agents: local traders who consume only the goods produced in the home country, and international traders who consume only the goods produced in the foreign country. For international traders, the foreign currency gives more opportunity to obtain the foreign goods than the home currency does. Thus, when an international trader holds the home currency, he has an incentive to exchange the home currency for the foreign currency. Unlike Zhou, the model has a feature that currency exchange is more likely to occur when many agents are engaged in international trade.

A Lexical Search Model based on word association norms

2019 ◽  
Vol 36 (5) ◽  
pp. 4587-4597
Author(s):  
Jorge Reyes-Magaña ◽  
Gemma Bel-Enguix ◽  
Helena Gómez-Adorno ◽  
Gerardo Sierra
Keyword(s):  
Word Association ◽  
Search Model ◽  
Model Based

scholarly journals Segmented Housing Search

2020 ◽  
Vol 110 (3) ◽  
pp. 720-759 ◽  
Author(s):  
Monika Piazzesi ◽  
Martin Schneider ◽  
Johannes Stroebel
Keyword(s):  
San Francisco ◽  
San Francisco Bay Area ◽  
Supply And Demand ◽  
Housing Markets ◽  
Search Model ◽  
Local Market ◽  
Search Activity ◽  
Bay Area ◽  
Supply And Demand Shocks ◽  
Housing Search

We study housing markets with multiple segments searched by heterogeneous clienteles. In the San Francisco Bay Area, search activity and inventory covary negatively across cities, but positively across market segments within cities. A quantitative search model shows how the endogenous flow of broad searchers to high-inventory segments within their search ranges induces a positive relationship between inventory and search activity across segments with a large common clientele. The prevalence of broad searchers shapes the response of housing markets to localized supply and demand shocks. Broad searchers help spread shocks across many segments and reduce their effect on local market activity. (JEL D83, R21, R31)

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