The welfare effect of access to credit.

I present a model in which credit and outside money can be used as means of payment in order to analyze how access to credit affects welfare when credit markets feature limited participation. Allowing more agents to use credit has an ambiguous effect on welfare because it may make consumption-risk sharing more inefficient. I calibrate the model using U.S. data on credit-card transactions and show that the increase in access to credit from 1990 to the near present has had a slightly negative impact on welfare.Money; limited participation; risk sharing; credit;

Liquidity, Innovation and Growth

Many countries simultaneously suffer from high rates of inflation, low growth rates of per capita income and poorly developed financial sectors. In this paper, we integrate a microfounded model of money and finance into a model of endogenous growth to examine the effects of inflation and financial development. A novel feature of the model is that the market for innovation goods is decentralized. Financial intermediaries arise endogenously to provide liquid funds to the innovation sector. We calibrate the model to address two quantitative issues. One is the effects of an exogenous improvement in the productivity of the financial sector on welfare and per capita growth. The other is the effects of inflation on welfare and growth. Consistent with the data but in contrast to previous work, reducing inflation generates large gains in the growth rate of per capita income as well as in welfare. Relative to reducing inflation, improving the efficiency of the financial market increases growth and welfare by much smaller amounts.Money; Growth; Innovation; Financial intermediation

What is the value of being a superhost?

We construct a search model where sellers post prices and produce goods of unknown quality. A match between a buyer and a seller reveals the quality of the seller.We look at the pricing decisions of the sellers in this environment. We then introduce a rating system whereby buyers reveal the seller’s type by giving them a ‘star’ ifthey are a high quality seller. We show that new sellers charge a low price to attractbuyers and if they receive a star they post a high price. Furthermore, high qualitysellers sell with a higher probability than new sellers. We show that welfare is higherwith a ratings system. Using data on Airbnb rentals to compare the pricing decisionsof Superhosts (elite rentals) to non-Superhosts we show that Superhosts: 1) chargehigher prices, 2) have a higher occupancy rate and 3) higher revenue than non-Superhosts

Currency union with or without banking union

We build a symmetric two‐country monetary model with credit to study the interplay between currency integration and credit markets integration. The currency arrangement affects credit availability through default incentives. We capture credit markets integration by the extra cost incurred to obtain credit for cross‐border transactions and, with the euro area context in mind, label as banking union a situation where this cost is low. For high levels of the cross‐border credit cost, currency integration may magnify default incentives, leading to more credit rationing and lower welfare. The integration of credit markets restores the optimality of the currency union.Cet article propose un modèle avec monnaie externe, banques et défaut endogène sur les emprunts afin d’analyser l’impact du degré d’imperfection dumarché du crédit sur la désirabilité -pour les populations- des unions monétaires.Nous montrons que lorsque ces imperfections entraînent un coût plus élevé pourles banques d’octroyer un crédit sur l’étranger plutôt que dans leur juridiction, le bien-être peut être réduit en régime d’union monétaire. Nous montrons également que la mise en place d’une union bancaire qui supprimeraitces barrières à l’intégration des marchés du crédit restaure le résultat habitueld’optimalité des unions . Les implications empiriques de ces résultats pourl’organisation de l’union bancaire sont discutées

Credit, inflation and currency competition. Welfare and growth effects

Cette thèse s'intéresse principalement à la concurrence entre moyens de paiement. D'abord, nous présentons un modèle de prospection pour retrouver la thèse de Tooke (1844) : la monnaie est utilisée dans les transactions entre entrepreneurs et salariés; le crédit est utilisé dans les transactions entre entrepreneurs. Par la suite, nous présentons un modèle dans lequel les agents peuvent utiliser du crédit ou de la monnaie, bien que l'utilisation du crédit soit soumise à une technologie faillible. Un accès plus large au crédit n'implique pas forcément une amélioration du bien-être car il peut rendre le partage de risque moins efficient. Nous effectuons une analyse quantitative à partir des données des Etats-Unis et montrons que l'élargissement de l'accès au crédit des dernières années n'a pas donné lieu à une amélioration du bien-être. Ensuite, nous adressons un constat paradoxal en apparence : les monnaies nationales restent le moyen d'échange principal dans la plupart des économies, malgré la disponibilité des monnaies moins inflationnistes. Nous montrons que, si les banques ont un pouvoir exécutoire des dettes limité, l'inflation de la monnaie dans laquelle les dettes sont libellées peut opérer comme un dispositif d'engagement pour les emprunteurs de sorte que, à l'équilibre, les agents préfèrent la monnaie la plus inflationniste, même en absence de coûts de transactions à utiliser la monnaie concurrente. Enfin, nous étudions l'effet de l'inflation et de l'efficience du système financier sur la croissance et le bien-être. Notre formalisation de l'échange monétaire du marché des innovations nous permet d'estimer un coût de l'inflation plus large que des estimations précédentes.The purpose of this thesis is to address several monetary issues, with an emphasis on competition between different means of payment. First, we present a search-theoretic model to replicate Tooke's (1844) thesis: money is more likely to be used in transactions between entrepreneurs and workers; inside money is more often used between entrepreneurs. Second, we present a model where agents can use credit and outside money, although the technology to use credit is imperfect. Allowing more agents to use credit has an ambiguous effect on welfare, because it may make consumption risk sharing be more inefficient. After calibrating the model using data from the United States, we show that the increase in access to credit has had a slightly negative impact on welfare. Next, we address a puzzling observation: International (low inflation) currencies are in general easily available; however, domestic currencies remain the means of payment mostly used in the majority of countries. We show that, if debt enforcement is not fully feasible, borrowing an inflationary currency may function as a commitment device. As a result, in equilibrium agents prefer the more inflationary currency, even though no costs in using the less inflationary currency exist. Finally, we analyze how inflation and the efficiency of the financial system impact on countries' performance in terms of real growth and welfare. We integrate a market for innovation-goods into a microfounded monetary model. Our model predicts a cost of inflation that is considerably stronger than previous estimates, owing to the explicit modeling of the need of liquidity to acquire innovation-goods

Welfare improving effects of inflation in an economy with multiple currencies

Le taux optimal d’inflation demeure l’objet de vifs débats pour la théorie et la politique monétaire. La littérature qui se propose de rationaliser les cibles positives d’inflation choisies par les banques centrales se heurte à une critique majeure, du fait de supposer que seule une monnaie est à la disposition des agents. Cet article présente un modèle dans lequel l’inflation de la monnaie nationale peut améliorer le bien-être, tout en étant en concurrence avec une monnaie moins inflationniste et en l’absence de coûts spécifiques à l’usage de la monnaie concurrente.The optimal inflation rate is an outstanding issue in monetary theory and policy. Previous work attempting to rationalize positive inflation targets chosen by central banks is subject to a major criticism, since its conclusions depend on the assumption that only one currency is available to agents. This paper presents a model in which the inflation of the domestic currency may have a welfare-improving effect, even though a less inflationary currency exists and no costs in using it are assumed.ou

El debate en torno a la dolarización : ideas y propuestas

Fil: Rojas Breu, Mariana