General Preferences for Consumption Goods in the Random Matching Model of Commodity Money

Cuadras Morató, Xavier

doi:10.2139/ssrn.562983

Abstract

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General Preferences for Consumption Goods in the Random Matching Model of Commodity Money

Xavier Cuadras Morató

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

UPF Economics and Business Working Paper No. 706

Abstract:
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.

Number of Pages in PDF File: 20

Keywords: Commodity money, random matching, general preferences

JEL Classification: C73, D83, E00

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Date posted: July 10, 2004

Suggested Citation

Cuadras Morató, Xavier, General Preferences for Consumption Goods in the Random Matching Model of Commodity Money. UPF Economics and Business Working Paper No. 706. Available at SSRN: http://ssrn.com/abstract=562983 or http://dx.doi.org/10.2139/ssrn.562983

Contact Information

Xavier Cuadras Morató (Contact Author)

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
(34) 93 542 26 06 (Phone)
(34) 93 542 17 46 (Fax)