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Social and Behavioral Sciences Commons

Open Access. Powered by Scholars. Published by Universities.®

1989

Yale University

Exchange economy

Articles 1 - 2 of 2

Full-Text Articles in Social and Behavioral Sciences

Gold, Liquidity And Secured Loans In A Multi-Stage Economy. Part Ii. Many Durables, Land And Gold, Martin Shubik, Shuntian Yao Apr 1989

Gold, Liquidity And Secured Loans In A Multi-Stage Economy. Part Ii. Many Durables, Land And Gold, Martin Shubik, Shuntian Yao

Cowles Foundation Discussion Papers

In a previous paper (Shubik and Yao, 1988) we examined a multistage exchange economy with m perishable goods and one infinitely durable gold used as money. we considered an economy without credit and one with one hundred percent secured loans. In this paper we consider an economy with m(1) goods which have finite lives and m(2) goods which are of infinite durability. Historically the two durables which have been prominent in economic activity have been gold and land, although one might wish to include platinum and some other items.


The Transactions Cost Of Money (A Strategic Game Analysis), Martin Shubik, Shuntian Yao Mar 1989

The Transactions Cost Of Money (A Strategic Game Analysis), Martin Shubik, Shuntian Yao

Cowles Foundation Discussion Papers

The payments system of a modern economy is a peculiar mix of technological and institutional factors. Trade takes time and involves some form of money or credit. Going to the bank or arranging credits is expensive. Baumol (1952) and Tobin (1956) address the costs of transactions. However both the Baumol and the Tobin analysis was carried out in a partial equilibrium context. Here we address the task of considering the costs of banking in a closed strategic market game.