On the Micro-Dynamics of a Cash-in-Advance Economy

van der Hoog, Sander

On the Micro-Dynamics of a Cash-in-Advance Economy

van der Hoog S (2005) CeNDEF Working paper 05-04 University of Amsterdam. Published as: van der Hoog, S. (2008). On the Disequilibrium Dynamics of Sequential Monetary Economies. Journal of Economic Behavior and Organization, 68(3-4), 525–552.

Diskussionspapier | Englisch

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paper-micro-dynamics.pdf

URN

urn:nbn:de:0070-pub-27765149

Autor*in

van der Hoog, Sander^UniBi

Einrichtung

Fakultät für Wirtschaftswissenschaften > Lehrstuhl für VWL, Wirtschaftstheorie und Computational Economics

Abstract / Bemerkung

The purpose of this paper is to develop a general equilibrium model with money and trade taking place at disequilibrium prices. There are multiple markets being visited sequentially and transactions occur along the adjustment path. This implies quantity rationing to clear the market and we assume that there are cash-in-advance constraints on the transactions. The updating of the prices and cash balances along the way makes it necessary for agents to reconsider their trading plans subject to new information due to substitution and spill-over effects. The dynamics of this disequilibrium re-optimization process are shown to depend crucially on the exchange mechanisms that are imposed. One of the results is that the introduction of a cash-in-advance constraint does not help in stabilizing the fluctuations of cash balances, even though it does prevent debts from occurring outside of equilibrium.

Stichworte

Financial constraints.; Moving-horizon optimization; Sequential markets; Monetary dynamics; Agent-based Computational Economics; ETACE_Agent_Based_Modelling

Erscheinungsjahr

2005

Serientitel

CeNDEF Working paper 05-04 University of Amsterdam. Published as: van der Hoog, S. (2008). On the Disequilibrium Dynamics of Sequential Monetary Economies. Journal of Economic Behavior and Organization, 68(3-4), 525–552.

Page URI

https://pub.uni-bielefeld.de/record/2776514

Zitieren

van der Hoog S. On the Micro-Dynamics of a Cash-in-Advance Economy. CeNDEF Working paper 05-04 University of Amsterdam. Published as: van der Hoog, S. (2008). On the Disequilibrium Dynamics of Sequential Monetary Economies. Journal of Economic Behavior and Organization, 68(3-4), 525–552.; 2005.

van der Hoog, S. (2005). On the Micro-Dynamics of a Cash-in-Advance Economy (CeNDEF Working paper 05-04 University of Amsterdam. Published as: van der Hoog, S. (2008). On the Disequilibrium Dynamics of Sequential Monetary Economies. Journal of Economic Behavior and Organization, 68(3-4), 525–552.).

van der Hoog, Sander. 2005. On the Micro-Dynamics of a Cash-in-Advance Economy. CeNDEF Working paper 05-04 University of Amsterdam. Published as: van der Hoog, S. (2008). On the Disequilibrium Dynamics of Sequential Monetary Economies. Journal of Economic Behavior and Organization, 68(3-4), 525–552.

van der Hoog, S. (2005). On the Micro-Dynamics of a Cash-in-Advance Economy. CeNDEF Working paper 05-04 University of Amsterdam. Published as: van der Hoog, S. (2008). On the Disequilibrium Dynamics of Sequential Monetary Economies. Journal of Economic Behavior and Organization, 68(3-4), 525–552.,.

van der Hoog, S., 2005. On the Micro-Dynamics of a Cash-in-Advance Economy, CeNDEF Working paper 05-04 University of Amsterdam. Published as: van der Hoog, S. (2008). On the Disequilibrium Dynamics of Sequential Monetary Economies. Journal of Economic Behavior and Organization, 68(3-4), 525–552.,

S. van der Hoog, On the Micro-Dynamics of a Cash-in-Advance Economy, CeNDEF Working paper 05-04 University of Amsterdam. Published as: van der Hoog, S. (2008). On the Disequilibrium Dynamics of Sequential Monetary Economies. Journal of Economic Behavior and Organization, 68(3-4), 525–552., 2005.

van der Hoog, S.: On the Micro-Dynamics of a Cash-in-Advance Economy. CeNDEF Working paper 05-04 University of Amsterdam. Published as: van der Hoog, S. (2008). On the Disequilibrium Dynamics of Sequential Monetary Economies. Journal of Economic Behavior and Organization, 68(3-4), 525–552. (2005).

van der Hoog, Sander. On the Micro-Dynamics of a Cash-in-Advance Economy. 2005. CeNDEF Working paper 05-04 University of Amsterdam. Published as: van der Hoog, S. (2008). On the Disequilibrium Dynamics of Sequential Monetary Economies. Journal of Economic Behavior and Organization, 68(3-4), 525–552.

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