Individual and aggregate real balances in a random matching model

This paper investigates the characteristics of stationary single-price equilibrium in a monetary random-matching model where agents can hold an arbitrary amount of divisible money and where production is costly. At such an equilibrium, agents’ money holdings are endogenously determined and uniformly bounded. A refinement of weakly undominated strategies is argued to be necessary. It is shown that a continuum of single-price equilibria indexed by the aggregate real-money balance exists if one such equilibrium exists. Equilibria with different money-holdings upper bounds, hence different distributions, but with identical aggregate real-money balances, can coexist.Money theory ; Prices

A stable money demand: Looking for the right monetary aggregate

A money demand relationship with M1 as the monetary aggregate holds very well until the mid-1980s but not well after that. This could be because the demand for money is not a stable relationship. The authors' conclusion is that the measure of money is not a stable measure. Technological innovation and changes in regulatory practices in the past two decades have made other monetary aggregates as liquid as M1. Once an appropriately adjusted measure of money is taken into consideration, the stability of money demand is recovered.Money ; Money supply

Gluon quasidistribution function at one loop

We study the unpolarized gluon quasidistribution function in the nucleon at one loop level in the large momentum effective theory. For the quark quasidistribution, power law ultraviolet divergences arise in the cut-off scheme and an important observation is that they all are subjected to Wilson lines. However for the gluon quasidistribution function, we first point out that the linear ultraviolet divergences also exist in the real diagram which is not connected to any Wilson line. We then study the one loop corrections to parton distribution functions in both cut-off scheme and dimensional regularization to deal with the ultraviolet divergences. In addition to the ordinary quark and gluon distributions, we also include the quark to gluon and gluon to quark splitting diagrams. The complete one-loop matching factors between the quasi and light cone parton distribution functions are presented in the cut-off scheme. We derive the $P^z$ evolution equation for quasi parton distribution functions, and find that the $P^z$ evolution kernels are identical to the DGLAP evolution kernels.Comment: 26 pages,8 figures;accepted by Eur.Phys.J

Money as a mechanism in a Bewley economy

We study what features an economic environment might possess, such that it would be Pareto efficient for the exchange of goods in that environment to be conducted on spot markets where those goods trade for money. We prove a conjecture that is essentially due to Bewley [1980,1983]. Monetary spot trading is nearly efficient when there is only a single perishable good (or a composite commodity) at each date and state of the world; random shocks are idiosyncratic, privately observed, and temporary; markets are competitive; and the agents are very patient. This result is a fairly close analogue, for trade using outside, fiat money, of a recent characterization by Levine and Zame [2002] of environments in which spot trade using inside money, in the form of one-period debt payable in a commodity, is nearly Pareto efficient. We also study a example where expansionary monetary mechanism Pareto dominates laissez-faire or contractionary monetary mechanism in an environment with impatient agents.Money ; Monetary theory