Unstable and stable steady-states in the Kiyotaki-Wright model |
| |
Authors: | Juan-Manuel Renero |
| |
Institution: | (1) Departamento de Economía, Instituto Tecnológico Autónmo de México (ITAM), Rio Hondo No. 1, México, D.F. 0100, MEXICO, MX |
| |
Abstract: | Summary. I provide new results concerning dynamics for a version of the Kiyotaki-Wright model (1989) in which strategies (either mixed
or pure) are restricted so that agents play the same strategy for each opportunity set. My results demonstrate the importance
of examining stability in such models, because they show that many steady states focused on in the literature are not stable. Furthermore, I exhibit examples of two-period-convergent equilibria in which agents are indifferent among media of
exchange. Consequently, their endogenous transaction pattern is analog to the coexistence of assets whose acceptability or “liquidity” varies inversely with their
rates of return.
Received: June 21, 1996; revised version: December 2, 1996 |
| |
Keywords: | JEL Classification Numbers: E40 E41 E42 E43 C62 |
本文献已被 SpringerLink 等数据库收录! |
|