Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2
Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2
PART IIIAn Introduction to Uncertain and Sequential Trade (UST)14Real Models15A Monetary Model16Limited Participation, sticky Prices, and UST: A Compa Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2arison17Inventories and the Business Cycle18Money and Credit in the Business Cycle19Evidence from Micro Data20The Friedman Rule in a UST Model21Sequential International Trade22Endogenous Information and Externalities23Search and Contracts209In the Arrow-Debreu model reviewed in chapter 11 there is u Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2ncertainty about the future but no uncertainty about current demand conditions. Trade occurs before anything happens. The number of agents who particiEbook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2
pate in trade is known and we may assume that the price of all contingent commodities is known in advance to all participants.The situation is differePART IIIAn Introduction to Uncertain and Sequential Trade (UST)14Real Models15A Monetary Model16Limited Participation, sticky Prices, and UST: A Compa Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2the market clearing prices by the following (tatonnement) process. He calls a vector of prices and asks agents to report their demand and supply for this price vector. He then checks whether markets are cleared. If not he tries another vector of prices and keeps doing it until he finds a vector of p Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2rices that dears all markets. Actual trade is prohibited until the market clearing price vector is found.This standard formulation is problematic forEbook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2
three reasons. First, the description of the Walrasian auctioneer is not complete. Why does he provide the public service of finding the market dearinPART IIIAn Introduction to Uncertain and Sequential Trade (UST)14Real Models15A Monetary Model16Limited Participation, sticky Prices, and UST: A Compa Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2vector is found.Finally, and maybe most importantly, prices do not behave according to the standard Walrasian model. There is ample evidence against the ‘ law of one price" and the effect of monetary shocks on prices occurs with a significant lag.The new Keynesian (sticky price) models reviewed in c Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2hapter 8 provide an answer to the first problem. In these models agents, rather than the Walrasian auctioneer, make price choices. But new Keynesian mEbook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2
odels typically neglect the choice of quantities and typically assume that sellers satisfy demand at their preannounced prices. An attempt to relax thPART IIIAn Introduction to Uncertain and Sequential Trade (UST)14Real Models15A Monetary Model16Limited Participation, sticky Prices, and UST: A Compa Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2er the second problem by allowing trade before the resolution of uncertainty about demand (and the market clearing price). Agents know in advance the prices in all potential markets, take these prices as given and make plans accordingly. In equilibrium the plans made by all agents are mutually consi Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2stent and can be executed. But unlike the Arrow-Debreu model, in the UST model there is uncertainty about the set of markets that will open (or be actEbook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2
ive).It is also possible to think of the UST model as an answer to the first problem. As in the Arrow-Debreu model there is no need for an auctioneer PART IIIAn Introduction to Uncertain and Sequential Trade (UST)14Real Models15A Monetary Model16Limited Participation, sticky Prices, and UST: A Compa Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2ets before the beginning of trade. We may also think of agents in the UST model as choosing price tags (not necessarily the same tags on all units).But the major contribution of the UST model is in explaining observations which are regarded as ‘ puzzles" from the point of view of the standard Walras Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2ian model. We will apply the UST approach to explain the observed deviations from the law of one price, the real effects of money and the behavior ofEbook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2
inventories. We will then turn to some policy questions. We start from a real version of the model and then turn to monetary versions.CHAPTER 14Real MPART IIIAn Introduction to Uncertain and Sequential Trade (UST)14Real Models15A Monetary Model16Limited Participation, sticky Prices, and UST: A Compa Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2ny buyers will eventually appear. He assumes that less expensive goods will be sold before more expensive ones and obtains an equilibrium trade-off between the price and the probability of making a sale. A similar trade-off arises in Butters (1977) in a model in which sellers send price offers to po Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2tential customers. In both models sellers commit to prices before the realization of demand. Prescott thinks of his example as one "which entails monoEbook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2
poly power on the part of sellers" (p. 1233).In the UST approach taken by Eden (1990). trade is sequential and equilibrium distribution of prices is oPART IIIAn Introduction to Uncertain and Sequential Trade (UST)14Real Models15A Monetary Model16Limited Participation, sticky Prices, and UST: A Compa Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2with the standard Walrasian model. It turns out that the main difference is in the time in which information about the realization of demand becomes public. In the ƯST model information about the realization of demand is being resolved sequentially during trade while in the standard model it is reso Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2lved before the beginning of trade.14.1 AN EXAMPLETo illustrate the difference between the two alternative spot market models we use the example in EdEbook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2
en and Griliches (1993) that builds on Hall (1988).Restaurants in a certain location produce lunches. Fixed and variable labor are the only factors ofPART IIIAn Introduction to Uncertain and Sequential Trade (UST)14Real Models15A Monetary Model16Limited Participation, sticky Prices, and UST: A Compa Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2 that will arrive in the marketplace is uncertain: It may be N or N + A with equal probabilities of occurrence. Each buyer that arrives, is willing to pay up to 6 dollars for a meal, where 0 > (Ị) 4- 2k.REAL MODELS 211Capacity choice (V)State is observedOutput choice Q, < V I—IFigure 14.1I1 Sequence Ebook A course in monetary economics - Sequential trade, money, and uncertainty: Part 2 of events in the standard modelpSRSPART IIIAn Introduction to Uncertain and Sequential Trade (UST)14Real Models15A Monetary Model16Limited Participation, sticky Prices, and UST: A CompaPART IIIAn Introduction to Uncertain and Sequential Trade (UST)14Real Models15A Monetary Model16Limited Participation, sticky Prices, and UST: A CompaGọi ngay
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