Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 3 of 3
Full-Text Articles in Entire DC Network
Equilibrium In A Cash-In-Advance Economy With Endogenous Labour Supply, Benoit Carmichael
Equilibrium In A Cash-In-Advance Economy With Endogenous Labour Supply, Benoit Carmichael
Digitized Theses
The thesis analyses the equilibrium of a cash-in-advance economy with endogenous production. In this framework, inflation is a tax on trade, raising the price of goods purchased relative to those supplied. The thesis investigates three aspects of the disruptive effects of this inflation tax on the allocation of resources.;The first essay analyses the effects of anticipated inflation on stock market prices in stationary equilibrium. The essay demonstrates that a permanent rise in the anticipated rate of inflation has a depressing effect on the stock market. There are two reasons for this result. Firstly, the real value of a given stream …
Multimarket Search, Paul Murray Anglin
Multimarket Search, Paul Murray Anglin
Digitized Theses
The extensive literature on searching for price information deals almost exclusively with the search for the price of a single good. Since consumers would like to maximize the utility of consumption, a more general problem than minimizing the price of one good, search theory should consider the problem of searching in several markets in order to determine the robustness of conclusions derived from a theory of search in a single market.;In a model of behaviour in a single market, consumers may either accept or reject a price offer. In a model of multimarket search, consumers must also decide which market …
Inflation And Costly Price Adjustment, Jerzy Dariusz Konieczny
Inflation And Costly Price Adjustment, Jerzy Dariusz Konieczny
Digitized Theses
The welfare costs of anticipated inflation are analyzed on the basis of the roles money plays in the economy. The traditional account of Bailey (1956) and Friedman (1969) are incomplete. When money is a store of value inflation distorts the optimal portfolio composition and the intertemporal allocation of consumption. When money is a medium of exchange, inflation is a tax on market activities. It reduces the trading efficiency of the economy and so shrinks agents' opportunity sets. When money is used as a unit of account, accounting costs rise. The frequency of price changes may, but need not, increase. The …