Decentralizing constrained-efficient allocations in the Lagos-Wright pure currency economy
详细信息 查看全文
- 作者：Ayushi Bajaj
- 关键词：D83
- 刊名：Journal of Economic Theory
- 出版年：2017
- 出版时间：January 2017
- 年：2017
- 卷：167
- 期：Complete
- 页码：1-13
- 全文大小：286 K
- 卷排序：167
文摘
This paper offers two ways to decentralize the constrained-efficient allocation of the Lagos–Wright (2005) pure currency economy. The first way has divisible money, take-it-or-leave-it offers by buyers, and a transfer scheme financed by money creation. If agents are sufficiently patient, the first best is achieved for finite money growth rates. If agents are impatient, the equilibrium allocation approaches the constrained-efficient allocation asymptotically as the money growth rate tends to infinity. The second way has indivisible money, take-it-or-leave-it offers by buyers, and no government intervention. We discuss the strict implementation of constrained-efficient allocations and the applicability of our scheme to economies with Lucas trees, endogenous participation, match-specific heterogeneity, and sequential competitive markets.