A Walrasian theory of commodity money: Paradoxical results

The objective of this note is to analyze some implications of the model of commodity money described in Banerjee and Maskin (1996) which may seem paradoxical. In order to do this, we incorporate a general production cost structure into the model. We focus on two different results. First, the existence of technologies that make counterfeiting a commodity more difficult may exclude it from being used as medium of exchange. Second, allocative distortions due to problems of asymmetric information may become larger in the presence of such technologies.Money, lemons

General preferences for consumption goods in the random matching model of commodity money

This paper generalizes the original random matching model of money by Kiyotaki and Wright (1989) (KW) in two aspects: first, the economy is characterized by an arbitrary distribution of agents who specialize in producing a particular consumption good; and second, these agents have preferences such that they want to consume any good with some probability. The results depend crucially on the size of the fraction of producers of each good and the probability with which different agents want to consume each good. KW and other related models are shown to be parameterizations of this more general one.Commodity money, random matching, general preferences

The economic effects of a Spanish trade boycott against Catalan products

We study the potential consequences of a hypothetical trade boycott against Catalan products organized by some sectors of the Spanish society mainly for political reasons. A symmetric trade boycott would have two effects: a reduction of Catalan exports to Spain and a partial process of import substitution in Catalonia. In order to quantify the economic impact of the boycott, we compare the "actual" Catalan economy, as described in the input-output table for 2005, with a "simulated" Catalan economy that takes into account the effects of a boycott on the trade exchanges between Catalonia and Spain.trade boycott, input output analysis

Effects of cycling on lithium-ion battery hysteresis and overvoltage

Currently, lithium-ion batteries are widely used as energy storage systems for mobile applications. However, a better understanding of their nature is still required to improve battery management systems (BMS). Overvoltages and open-circuit voltage (OCV) hysteresis provide valuable information regarding battery performance, but estimations of these parameters are generally inaccurate, leading to errors in BMS. Studies on hysteresis are commonly avoided because the hysteresis depends on the state of charge and degradation level and requires time-consuming measurements. We have investigated hysteresis and overvoltages in Li(NiMnCo)O2/graphite and LiFePO4/graphite commercial cells. Here we report a direct relationship between an increase in OCV hysteresis and an increase in charge overvoltage when the cells are degraded by cycling. We fnd that the hysteresis is related to difusion and increases with the formation of pure phases, being primarily related to the graphite electrode. These fndings indicate that the graphite electrode is a determining factor for cell efciency.Peer ReviewedPostprint (published version

Wage inequality and unemployment with overeducation

A skill-biased change in technology can account at once for the changes observed in a number of important variables of the US labour market between 1970 and 1990. These include the increasing inequality in wages, both between and within education groups, and the increase in unemployment at all levels of education. In contrast, in previous literature this type of technology shock cannot account for all of these changes. The paper uses a matching model with a segmented labour market, an imperfect correlation between individual ability and education, and a fixed cost of setting up a job. The endogenous increase in overeducation is key to understand the response of unemployment to the technology shock.Unemployment, wage premium, overeducation, SBTC

Are changes in education important for the wage premium and unemployment?

A generalized rise in unemployment rates for both college and high-school graduates, a widening education wage premium, and a sharp increase in college education participation are characteristic features of the transformations of the U.S. labor market between 1970 and 1990. This paper investigates the interactions between these changes in the labor market and in educational attainment. First, it develops an equilibrium search and matching model of the labor market where education is endogenously determined. Second, calibrated versions of the model are used to study quantitatively whether either a skill-biased change in technology or a mismatch shock can explain the above facts. The skill-biased shock accounts for a considerable part of the changes but fails to produce the increase in unemployment for the educated labor force. The mismatch shock explains instead much of the change in the four variables, including the wage premium.Education, wage Premium, unemployment

The impact of the crisis on the financial system

Analyses the Catalan and Spanish financial system.Expects liquidity problems to come up, but not be of systemic nature and in a few institution