| Money and the gains from trade Elektronische Daten (2002) | |||||||||||
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| Institute for Empirical Research Economics University Zurich Working Paper Series ISSN Working Paper Money and the Gains from Trade Aleksander Berentsen and Guillaume Rocheteau January Money and the Gains from Trade Aleksander Berentsen Economics Departement University Basel Switzerland Guillaume Rocheteau School Economics Australian National University Australia Previous version July Revised version April Abstract This paper studies the role money environments where each meeting there double coincidence real wants Traders who meet random finance their purchases through current production the sale divisible money both shown that the absence valued money traders have asymmetric tastes for each other good they produce and exchange socially inefficient quantities With valued money however traders exchange efficient quantities the asymmetry tastes not too large shown that the gains from trade the monetary economy are strictly greater than those the corresponding barter economy that the Friedman rule holds and that the allocation resources the monetary economy converges the allocation the barter economy the growth rate the money supply increased Keywords Money Double Coincidence Bargaining Search JEL This paper forthcoming the International Economic Review has circulated under the title The Role Money Double Coincidence Environments have benefitted from the comments Ernst Baltensperger Marius lhart Jean Cartelier Aleksandar Georgiev Thorsten Hens Simon rtscher Randall Wright and f | |||||||||||
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